CSL Ltd (ASX: CSL) shares are joining in the broader market retrace today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $281.28. In early afternoon trade on Tuesday, shares are swapping hands for $280.51 apiece, down 0.3%.
For some context, the ASX 200 is down 0.4% at this same time.
Taking a step back, CSL shares have gained 5.0% in a year, trailing the 16.5% returns delivered by the benchmark index. The biotech stock also trades on an unfranked trailing dividend yield of 1.4%.
So, should I buy the stock today?
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CSL shares: Buy, sell, hold?
According to Catapult Wealth's Dylan Evans (courtesy of The Bull), CSL shares should be on my watchlist, but not ones to buy yet today.
"CSL reported fiscal year 2024 results in line with expectations," said Evans, who has a hold recommendation on the stock.
Commenting on those FY 2024 results, Evans said:
The core blood plasma business, which generates 68% of revenue, was a major contributor, growing 18% on the prior corresponding period. The immunisation and kidney disease divisions were soft, in our view, dragging on the overall result.
As for why the company deserves a spot on my watchlist, he said, "A stagnant share price combined with underlying growth have improved CSL's valuation."
Still, I shouldn't rush out and buy CSL shares today.
"The kidney and immunisation divisions will need to improve for the stock to find momentum and break out of its stagnant price trend," Evans said.
What else did the ASX 200 biotech stock report?
CSL's FY 2024 results, reported on 13 August, are the last price-sensitive news the company has released. With investor expectations running high, CSL shares closed down 4.6% on the day.
Expanding on some of the metrics mentioned by Catapult Wealth's Evans above, the company reported an 11% year on year increase in revenue (in constant currency) to US$14.8 billion.
And net profit after tax before amortisation (NPATA) in constant currency was up 15% to US$3.01 billion.
This saw management declare a final dividend of $2.175 per share, up 8.3% from the prior final dividend.
Looking ahead to what could impact CSL shares in FY 2025, CEO Paul McKenzie said at the time:
For FY 2025, revenue growth is anticipated to be approximately 5% to 7% over FY 2024 at constant currency. CSL's NPATA 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%.
