On Wednesday, RBC Capital adjusted its outlook on CSL (OTC:CSLLY) Ltd. (CSL:AU) (OTC: CMXHF) shares, reducing the price target to AUD278.00 from the previous AUD319.00, while keeping a Sector Perform rating on the stock. The modification follows CSL's fiscal year 2024 performance, which did not meet the market's expectations.
CSL's recent announcement showcased a fiscal year 2024 result that fell short of consensus forecasts, prompting the price target adjustment. Despite some positive developments such as an expansion in Behring GM, improvements in Vifor GM, stable half-on-half iron revenues, and advancing yield initiatives, the updates were not enough to provide a clear view of the company's medium-term financial outlook.
The analyst's statement highlighted the reasons behind the decision, noting that while the FY24 results indicated signs of improvement, the overall picture remains unclear. This uncertainty has led to a downward revision of forecasts and the new price target of AUD278 per share, a decrease from the earlier target of AUD319.
CSL's performance and guidance for fiscal year 2025 also played a role in the reassessment. The company's guidance came in below the consensus expectations, which has influenced the analyst's perspective on the stock's valuation.
The Sector Perform rating indicates that RBC Capital does not see CSL outperforming the market at this time, but it also does not expect the stock to underperform significantly. The new price target of AUD278.00 reflects the firm's tempered expectations for CSL's financial performance in the medium term.
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