CSL has bounced hard off its lows, and some are already buying back in. But one broker says it’s his ‘most likely to disappoint’.
Adam Dawes of Shaw and Partners said on this week’s Switzer Show that he’s not calling it yet for CSL.
With a collective sigh of relief from investors, CSL has risen about 24 per cent over the month. Dawes says that the view on selling had gone too far anyway.
“I think it’s probably overdone on the downside,” he said. “That’s why we’re starting to see the bounce.”
But Dawes still named CSL as the one most likely to trip up from here.
“CSL is the one that potentially might get a curve ball,” he said. “I don’t get too confident on CSL until I see the next reporting season.”
What the brokers are signalling
Dawes said the analyst community is warming up, but not committing.
“We’re starting to see brokers upgrading price targets, which is a good sign,” he said. “But they’re not saying outperform, they’re saying equal weight.”
Equal weight is broker code for hold. It means perform in line with the market, not beat it.
Dawes said he will not get confident on CSL until the next result.
Watch the interview
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