Shares in blood products and flu vaccine business CSL Limited (ASX: CSL) hit another record high of $232.69 today thanks to the falling Australian dollar making its U.S. dollar profits more valuable to Australian investors.
The US dollar is now buying close to A$1.40 on the back of the diverging interest rate spreads between the two countries with expectations that the Aussie dollar may have further to fall.
CSL has plenty going for it without the free kick of a weaker Australian dollar, as it was recently reported that the group plans to double the size of some of its US flu vaccine outputs via its Sequiris business in FY 2019 after gaining regulatory approval from the FDA.
Fresh from growing profits 29% in FY 2018, CSL is now forecasting profit growth of 10% – 14% in FY 2019, which is impressive considering it's no tiddler.
In fact with a market value over $103 billion it's only behind BHP Billiton Limited (ASX: BHP) and the Commonwealth Bank of Australia (ASX: CBA) in terms of market size. It might even overtake these two in the five years ahead if its earnings growth trajectory continues.
