CSL Ltd (ASX: CSL) shares have so far trailed the benchmark in 2024.
In late afternoon trade today, shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock are down 1.5% at $288.17. That's right about where the stock started in 2024 and is well behind the 7% year to date gains posted by the ASX 200.
Over the past 12 months, however, the biotech stock has outpaced the benchmark, gaining 25% compared to the 21% gain achieved by the ASX 200.
CSL shares also trade on an unfranked trailing dividend yield of 1.4%.
And according to Bell Potter Securities' Christopher Watt (courtesy of The Bull), they present an "appealing buying opportunity".
Time to buy CSL shares?
"CSL is a global biotechnology company. Its medicines treat haemophilia and immune deficiencies. It makes vaccines to prevent influenza," explains Watt, who has a buy rating on CSL shares. "The company provides products to patients in more than 100 countries."
As for why the ASX 200 biotech stock is one to buy today, Watt said:
CSL is a consistent performer. It generated total revenue of US$14.8 billion in fiscal year 2024, an increase of 11% on the prior corresponding period. Reported net profit after tax of US$2.642 billion was up 20%.
The shares were recently trading at a discount and present an appealing buying opportunity, in our view.
What's been happening with the ASX 200 biotech stock?
CSL shares were in the spotlight on 13 August when the company reported its FY 2024 results.
Driving the strong growth metrics Watt highlighted above, CSL's Behring business achieved a 14% year on year increase in total revenue to US$10.61 billion. The company's immunoglobulin sales reached US$5.67 billion, up 20% from FY 2023.
And helping support profits, CSL's plasma collection costs continued to decline over the year.
The ASX 200 biotech stock also provided some bullish guidance for FY 2025, though some market analysts were expecting even more.
Commenting on what might impact CSL shares in the year ahead, CEO Paul McKenzie said on the day:
For FY 2025, revenue growth is anticipated to be approximately 5% to 7% over FY 2024 at constant currency. CSL's NPATA [net profit after tax and amortisation] for FY 2025 is anticipated to be in the range of approximately $3.2 billion to $3.3 billion at constant currency, representing growth over FY 2024 of approximately 10% to 13%.
Over the medium term, CSL is in a strong position to continue to deliver annualised double-digit earnings growth.
CSL reaffirmed this guidance at the company's AGM earlier this week.
