The CSL Limited (ASX: CSL) share price is trading 1.27% higher on Friday at $279.93.
It's a positive day for the market overall, with the S&P/ASX 200 Index (ASX: XJO) up 1.68%.
CSL has been a market darling of the ASX 200 for many years. But CSL shares were smashed during the pandemic when lockdowns made the blood plasma collections that the biotech relies on very difficult.
Just before the pandemic, the CSL share price was trading at a record high of $336.40. Then came the COVID-19 market crash, when CSL shares hit an initial low of $270.88 in March 2020.
CSL has been rangebound ever since between the mid-$200s and about $315. The CSL share price hasn't been above $300 since December 2021.
One broker reckons that won't last long.
Image source: Getty Images
CSL to be a 'reopening' winner, says Wilsons
As reported in The Australian, Wilsons Advisory says CSL is among the next "reopening" stocks likely to take flight due to surging demand.
Wilsons reckons CSL shares will receive a boost alongside Qantas Airways Limited (ASX: QAN), Tabcorp Holdings Limited (ASX: TAH), and Aristocrat Leisure Limited (ASX: ALL) shares.
Wilsons analysts Rob Crookston and David Cassidy said:
Even though the ASX 200 hit its COVID trough more than two years ago, many post-COVID recovery stocks have yet to reach their full potential. We think this creates a significant opportunity that is still not fully appreciated.
This year's market sell-off has led to a further discounting of these reopening stocks. To date, the CSL share price is down 5.5% in 2022.
What else is happening with the CSL share price?
CSL conducted its annual general meeting on Wednesday.
As my Fool colleague James reported, CSL CEO and managing director, Paul Perreault, summarised the company's performance to date in FY23.
Perreault said:
In terms of guidance for Financial Year 23, I am pleased to reaffirm that: Revenue growth to be in the range of 7 to 11% over Financial Year 22 at constant currency, with net profit after tax expected to be approximately in the range of US$2.4 to US$2.5 billion at constant currency. On a like for like basis, this represents a growth of between 10 – 14%.
This guidance excludes Vifor earnings and acquisition costs, as well as non-recurring COVID-19 vaccine contributions. CSL will give a fuller update later this month.
Looking further ahead, Perreault is confident:
To close, I am absolutely certain that the fundamentals of our business are strong and the diversity of our pipeline is rich. This really sets up CSL to build on our track record of sustainable growth for years to come.
Yesterday, Medallion Financial managing director Michael Wayne said CSL "offers good long-term appeal for a lot of investors".
Wayne said CSL was a great earner and a beneficiary of a weaker Aussie currency:
It's a large company but still delivering double-digit revenue and earnings growth. We expect that to continue to deliver over the years to come …
… they are a US dollar earner so they generate their revenues and a lot of their earnings in US dollars and you convert that back to an Aussie dollar share price, it's a tailwind, particularly when you see the Aussie dollar come back as much as it has.
