The CSL share price is up 27% in 12 months

The CSL Limited (ASX:CSL) share price may be up 27% in 12 months, but I don't believe it is too late to invest…

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The CSL Limited (ASX: CSL) share price has been amongst the best performers on the ASX 200 on Friday.

In afternoon trade the biotherapeutics company's shares are up 2% to $198.29.

This latest gain means that the CSL share price is up almost 27% since this time last year.

Why is the CSL share price up 27% in 12 months?

Investors have been fighting to get hold of the company's shares following the release of an impressive full year result in August and an equally strong half year result last month.

In FY 2018 the company reported a net profit after tax of US$1,729 million, which was an increase of 29% on the prior corresponding period.

This was ahead of guidance and driven by strong sales of its Privigen, Hizentra, and IDELVION products and supported by the launch of the HAEGARDA product.

Pleasingly, the company has built on this in FY 2019 with a strong start to the financial year.

Last month CSL report total half year revenue of US$4.5 billion, up 9% on the prior corresponding period. This was the result of the CSL Behring business growing revenue by 8% to US$3,556 million and the Seqirus influenza business delivering a 21% lift in revenue to US$949 million.

On the bottom line the company posted a net profit after tax of US$1.2 billion, up 7% (10% at constant currency) when compared to the prior comparative period. Management also revealed that the company is trending towards the upper end of its full year profit guidance range of US$1,880 million to US$1,950 million. At the top end this represents growth of approximately 13%.

Revenue wasn't the only thing that was growing during the half. CSL spent US$391 million on research and development in the first half of FY 2019, up 14% from US$342.9 million a year earlier.

Whilst expenses are usually something you want to reduce, I'm happy to see CSL's R&D expense increase because of its track record of achieving strong returns on its investments. In addition to this, I believe this high level of R&D will ensure the company stays at the forefront of its key markets long into the future.

Is it too late to invest?

Whilst its shares have rallied hard and are trading on above-average multiples now, I don't believe it is too late to invest.

Nor do analysts at Macquarie who last month rated CSL as a buy with a $230.00 price target. This price target implies potential upside of over 15% for its shares over the next 12 months.

Overall, due to the quality of the company and its strong long-term growth prospects, I think CSL would be a great investment alongside fellow healthcare stars Cochlear Limited (ASX: COH) and ResMed Inc. (ASX: RMD).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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