CSL Ltd (ASX: CSL) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $265.50. During the Thursday lunch hour, shares are changing hands for $269.29 apiece, up 1.4%.
As you may be aware, CSL operates three distinct business divisions.
The company's Seqirus segment is one of the world's largest influenza vaccine businesses. CSL's Behring segment focuses on treating rare and serious diseases, and its Vifor segment, acquired in 2022, provides renal disease treatment.
CSL shares, alongside most every ASX healthcare stock came under selling pressure earlier this year. That came as investors mulled the potential impact of the 200% tariffs United States President Donald Trump said will be placed on pharmaceutical imports into the US commencing in 2026.
Following on that selling pressure, the ASX 200 biotech stock has enjoyed a strong rebound since late June. Shares are currently up 15.1% since the recent closing lows on 27 June.
And according to Catapult Wealth's Dylan Evans, the stock is still trading at attractive levels (courtesy of The Bull).
Image source: Getty Images
Should I buy CSL shares today?
Evans, who has a buy recommendation on CSL shares, isn't dismissing the potential negative impact from Trump's proposed tariffs.
"The Trump Administration's plan to impose pharmaceutical tariffs is significant for this biotechnology giant," he said. "Much of its manufacturing is based outside of the US, so any tariff is likely to have an impact on revenue."
But that doesn't mean CSL shares can't deliver some outsized share price gains in the years ahead.
"That said, CSL is trading on an attractive valuation against global peers, particularly for a company with a history of double-digit growth," Evans noted.
He concluded:
We see weakness as an opportunity to buy a high-quality company at an attractive price. There's a distinct possibility that any Trump tariff has less impact than expected, or is ultimately watered down, or simply disappears as part of another Trump backflip.
Atop of the potential for share price gains, CSL also has a lengthy track record of making two unfranked dividend payments per year.
Over the past 12 months, the company has paid out a (rounded) $4.25 a share in dividends. At the current share price, that gives CSL stock an unfranked trailing dividend yield of 1.6%.
As for the growth outlook for CSL shares, at the company's half-year results, management noted, "The fundamentals of CSL's underlying business units are robust and CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term."
