After a sensational start to the year, the CSL Limited (ASX: CSL) share price has faded in the last 30 days.
During this time the biotherapeutics company's shares have tumbled lower by around 10%.
Are they in the buy zone?
Although there are concerns over the headwinds the company faces from the strong Australian dollar, I feel reasonably confident that the local currency will fade in 2018 as U.S. rates continue to rise and local rates hold firm or even fall lower.
In light of this, I feel the latest sell-off could be an overreaction, making now an opportune time to snap up the shares of this high quality company.
Especially because the company's launch of its Haegarda product for the treatment of hereditary angioedema appears to have gone well.
The subcutaneous therapy, which launched late last month, is significantly cheaper than the current standard of care Cinryze and could be a boost to earnings in FY 2018.
As well as this, the company's sales of its immunoglobulins products continue to be a highlight.
It was thanks to stronger-than-expected sales of its immunoglobulins products that the company upgraded its full-year profit growth guidance in January.
Instead of the 11% underlying net profit growth it had guided to previously, management upgraded it to 18% to 20% growth this year.
Should you invest today?
There are few shares on the Australian share market which I believe have as promising long-term growth potential as CSL.
In light of this, I think investors should consider starting an investment or topping up an existing position following this recent share price weakness.
After all, I feel the combination of its strong profit growth and high quality business more than justifies its shares trading at a premium to the market average.
Currently its shares are changing hands at 29x trailing earnings, but could easily justify a higher premium like Cochlear Limited (ASX: COH) in my opinion.
This could mean there is still meaningful upside potential left for its shares this year.
