CSL Limited (ASX: CSL) is tipped to become the first stock to break $100, ahead of other hot favourites such as Commonwealth Bank of Australia (ASX: CBA) and Cochlear Limited (ASX: COH) according to a report in the Fairfax press.
Prior to the Reserve Bank's recent decision to leave interest rates on hold, many investors believed Commonwealth Bank would be the first to hit the milestone but CSL, a biopharmaceutical company specialising in blood and plasma products, is now the favourite after Goldman Sachs raised its 12-month price target on the stock to $107.00.
Although the company's recent earnings report disappointed many investors, 13 out of 17 analysts on Bloomberg still recommend the stock as a 'buy', as highlighted by the Fairfax press. Commonwealth Bank, in comparison, maintains an average price target just above $87 with just two analysts recommending it as a 'buy'.
While many investors consider the big four banks to be heavily overpriced, Australia's healthcare stocks are widely seen as having enormous potential. Not only will they benefit from Australia's growing and ageing population, many are also defensive plays in that demand for their services will remain strong even in times of economic uncertainty.
In addition to CSL, that would also include companies such as Healthscope Ltd (ASX: HSO), ResMed Inc. (CHESS) (ASX: RMD) and Ramsay Health Care Limited (ASX: RHC).
While CSL presents as an excellent stock, one of its downfalls is that it offers a fairly miserable dividend yield – currently just 1.7% unfranked. If you're after solid dividends, you need to know about the stock our top analyst just named his BEST dividend stock to buy in 2015.
NEW: Get our top dividend stock for 2015 – FREE!
