CSL Limited (ASX: CSL) shares are shrugging off the wider market malaise today and marching 0.3% higher.
The global biotech company closed at $296.20 per share yesterday and is currently trading for $297.05 per share.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.4% in early afternoon trading.
CSL has handily outperformed the benchmark both in this calendar year and over the longer-term.
And according to Blackmore Capital portfolio manager Marcus Bogdan, CSL shares are well-positioned for more outperformance ahead.
Double-digit earnings growth flagged
Speaking to Livewire, Bogdan picked CSL as one of two ASX 200 listed shares heâd be happy to buy and hold for five years.
He said the biotech company âis well-positioned to deliver double-digit earnings growth with strong underlying demand returning for plasma productsâ.
According to Bogdan:
Plasma collection has been the single biggest factor driving the companyâs share price performance during the COVID pandemic, where donor supply was significantly disrupted.
A sequential recovery in plasma supply is now well underway, benefiting from increased social mobility and the rollout of new donor centres. Indeed, we expect that the second half of 2022 will prove to be the trough in earnings for CSL, as annual collections are on track to exceed pre-COVID levels in FY23.
Bogdan also pointed to CSLâs influenza vaccine division, Seqirus, as offering ongoing tailwinds for the company:
Seqirus has been a critical source of diversification and growth for CSL during the ongoing plasma challenges experienced throughout the pandemic. Seqirus has been a beneficiary of heightened awareness of respiratory diseases and continued innovation in cell-based influenza vaccines has driven an improvement in margins.
Overall, we expect the structural demand drivers for plasma therapies and influenza vaccines to underpin growth for CSL for the foreseeable future.
How have CSL shares been performing?
While not shooting the lights out in 2022, CSL shares are a rare breed in that theyâre in the green, up 1% since the opening bell on 4 January. That contrasts with the 13% year-to-date loss posted by the ASX 200.
Longer-term, CSL shares are up 135% over the past five years.
The post CSL shares âwell-positioned to deliver double-digit earnings growthâ: expert appeared first on The Motley Fool Australia.
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More reading
- Could FY23 be a good year for the CSL share price?
- 3 ASX shares to buy in a sector suddenly soaring this month: expert
- Why is the CSL share price up 11% in a month?
- Top brokers name 3 ASX shares to buy today
- $264 million! The 10 highest-paid CEOs on the ASX
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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