RIO Rio Tinto Plc

24:02 GMT [Dow Jones] When biopharmaceuticals company CSL (CSL.AU) shares earlier this month topped the A$100 mark, it generated a flurry of interest and news articles. Yet Hugh Dive, senior portfolio manager at Aurora Funds Management, suggests there is something of a curse about the A$100 share price, if investors care to look at past examples of Incitec Pivot (IPL.AU) and Rio Tinto (RIO.AU) which both in past years rose above that hurdle but then tumbled back down. Looking at CSL and using the current broker consensus earnings numbers for the next three years, which Dive says look far too high, and using a terminal growth rate of 2.5% from 2026 to infinity, he says a share price of A$100 for implies a compound growth rate of 9.4% between 2019 to 2025. "CSL is a good company but this level of implied growth is far ahead of both the company forecasts and indeed their addressable market of plasma-derived therapies." CSL shares were last at A$93.15, having slipped 7.6% from an Aug. 4 closing high of A$100.77. (robb.stewart@wsj.com; Twitter: @RobbMStewart)

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