CSL Ltd (ASX: CSL) shares have had a year to forget.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed down 1.0% on Friday, trading for $120.84 apiece.
That sees the stock down a painful 49.6% over the past 12 months, relative to the 6.4% gains posted by the benchmark index over this same time.
Now CSL does pay dividends twice yearly. But the $4.26 a share in unfranked dividends the biotech company paid out over the last year fall far short of making up for the steep capital losses.
At Friday's close, CSL shares trade on a 3.5% unfranked trailing dividend yield.
Looking ahead, however, Mans Carlsson, a co-portfolio manager at Ausbil Investment Management, believes the ASX healthcare stock is well-placed for material recovery (courtesy of The Australian Financial Review).
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Should you buy CSL shares today?
Noting that his fund is overweight CSL shares, Carlsson said:
CSL is a quality business and while the company has had its issues recently, the business ultimately benefits from strong underlying demand and has a leading position in its core plasma business.
The second reason Carlsson is bullish on the biotech stock is the recent leadership shakeup.
Carlsson noted:
The new chief executive, Gordon Naylor, has come in after a period of challenging performance. He is a veteran, with over 30 years of experience in the company, having previously served as chief financial officer, and with a mandate to accelerate CSL's strategic transformation.
CSL announced the leadership change on 10 February. The handover from outgoing CEO Paul McKenzie, who served in the top role for three years, was effective immediately.
Commenting on his appointment on the day, Naylor said:
I have had a long association with CSL. It is a great company with innovative platforms, world-class people, as well as differentiated medicines and vaccines essential for patients and communities globally.
My immediate priority will be to work closely with the board and leadership team on executing our strategic transformation and delivering for our patients, public health and shareholders.
Which brings us to the third reason you might want to buy CSL shares today.
According to Ausbil's Carlsson:
We believe the current valuation to be more moderate relative to its own history and some market cap peers. In our view, it will not take too much of a positive surprise in the future for the stock to re-rate back to a higher multiple again.
