The CSL Limited (ASX: CSL) share price has been a bit of a disappointing investment in 2022 thus far. As it stands today, CSL shares are currently down 9.42% year to date. That includes the rather nasty 1.05% haircut we’ve seen so far today, which currently puts CSL at $268.12.
What might be even more disappointing for CSL investors though is the cool off we’ve seen since the ASX 200 healthcare giant reported its half-year earnings back in February. CSL dropped its numbers on 16 February. These were exceedingly well received at the time, evidenced by the CSL share price’s 14% rise between 15 and 17 February.
However, investor sentiment has cooled since then. At today’s share pricing, CSL is now more than 3% off of those highs reached on 17 February.
So what’s possibly gone awry at CSL that has caused this seeming share price malaise?
Why can’t the CSL share price get out of neutral?
Well, unfortunately, we can’t say for sure. The company hasn’t really given investors any major news since its earnings report, apart from a minor update to its ongoing quest to acquire the Swiss biotech company Vifor Pharma. But that doesn’t seem to have had much of an impact on CSL shares then or since.
But what we do know is that one expert ASX investor is eyeing off what she sees as a bargain. Writing in the Australian Financial Review (AFR) today, Jun Bei Liu of Tribeca Investment Partners, calls CSL a quality company that investors have still chosen to sell off. She noted how the CSL share price “outperformed expectations by over 10 per cent” at its earnings, so questions why its shares have fallen since then. That’s despite what she describes as an “exceptionally defensive global growth profile”.
Ms Liu estimates that CSL will “deliver in excess of 20 per cent returns” this year, here’s why:
As we move through the market uncertainty and geopolitical conflicts, confidence will return, and quality names will be the first to close the valuation gap.
At the current CSL share price, this ASX 200 health care share has a market capitalisation of $130.52 billion.
The post The company outperformed when it last reported, so why has the CSL share price been languishing? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns 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 Bruce Jackson.
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