Strong First-Half Result For CSL, No Change to Our Long-Term Outlook or Fair Value Estimate

Narrow-moat CSL posted a strong first-half result and increased the full fiscal year 2020 guided net profit growth by 3% to an increase of between 10% and 13% on the previous corresponding period, or pcp, in constant currency. We make no change to our AUD 236 fair value estimate or outlook for the company other than including a once-off USD 30 million gain in fiscal 2020. The guided net profit range of USD 2,110 million to USD 2,170 million does not include an anticipated foreign exchange headwind as a result of the strong U.S. dollar, which management has quantified at USD 70 million should rates remain stable for the remainder of the fiscal year. Our forecast fiscal 2020 net profit of USD 2,080 million falls within the guided range after factoring in the currency headwind.