Did the CSL share price fall or rise in October?

Was October a good month for CSL?

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Key points
  • The CSL share price slightly fell in October 
  • CSL provided a positive guidance update on its Vifor business during the month 
  • However, wider healthcare sector falls appeared to impact the CSL share price

The CSL Limited (ASX: CSL) share price descended slightly in the month of October.

CSL shares dropped 1.59% from $285.02 at market close on 30 September to $280.48 at market close on 30 October. In today's trade, CSL shares leapt 2.27%, finishing the month on a high.

Let's take a look at what played out and what could be ahead.

A doctor in a white coat sits at her computer with finger on mouth thinking about something in her office with medical equipment in the background.

Image source: Getty Images

How did the month play out for the CSL share price?

CSL shares descended nearly 7.92% between market close on 5 and 21 October before recovering.

However, the ASX 200 Healthcare Index (ASX: XHJ) also fell 6.5% during the same time frame.

On 12 October, CSL shares fell 1% despite an optimistic annual general meeting update. However, as my Foolish colleague James noted at the time, the share price fall appeared to be driven by broader selling in the healthcare sector.

CSL managing director Paul Perreault advised the company is performing in line with guidance in the 2023 financial year. He said:

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.

Meanwhile, on 17 October, CSL provided an update on its Vifor business. The company advised it expected more than 10% revenue growth in the medium term. Key drivers for this growth are diseases of iron deficiency, dialysis and nephrology.

The company provided a new FY23 net profit after tax before amortisation (NAPATA) guidance, including CSL Vifor, of US$2.7 to US$2.8 billion.

Meanwhile, CSL directors bought up the company's shares on 20 October. Non executive director Dr Megan Clark AC bought 270 CSL shares for $274.01. This represented an investment of $74,000. And on 24 October, non executive director Alison Watkins AM bought up 1,000 CSL shares at $272 for a total of $272,000.

CSL shares climbed nearly 5% between market close on 21 and 31 October.

Looking ahead, Bell Potter has recently named CSL as one of nine "champion stocks" for long-term investments. Bell Potter said these champion stocks have a "long-term positive thematic" that it expects will drive earnings growth and shareholder value in the coming years.

Meanwhile, Morgans analysts see CSL as a buy following its update on the new CSL Vifor business. Analysts have placed a $312.20 price target on the CSL share price. This implies an upside of 11% based on the current share price.

CSL share price snapshot

The CSL share price has shed 6.66% in the past year, while it has lost nearly 3.52% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has descended 6.83% in the past year.

CSL has a market capitalisation of about $135.2 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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