CSL holds support

Blood plasma group, CSL missed expectations with its profit report yesterday, leading to a test of key chart support.

Blood plasma group, CSL missed expectations with its profit report yesterday, leading to a test of key chart support.

Underlying net profit after tax grew 5% on a constant currency basis. . The headline result was hampered by losses related to CSL’s newly acquired flu vaccine business which is not expected to break even until F18.  The market was also disappointed in growth guidance of 11% for F17 across the total group.

Overall, however, the business remains in solid shape. This year it will get the benefit of revenue from its new haemophilia products Idelvion and Afstyla.  The current $1bn share buyback program is now 92% complete and is likely to be followed by another $500m.

Yesterday, the stock fell to but bounced off, trend line support just above $107. The 40 week (200 day) moving average is just below suggesting this $105/$107 level is a key support zone for CSL.