Could CSL Limited shares be worth $111?

Credit: Anoto AB

The CSL Limited (ASX: CSL) share price rose 1.6% today to over $107 – its highest-ever share price.

Source: Google Finance

Source: Google Finance

However, analysts at the prominent investment bank, Deutsche Bank, believe there could still be value in the company’s shares. According to a feed from Dow Jones Newswires, the analysts raised their price target on shares of the biopharmaceutical giant by 7.8% to $111.

Deutsche Bank’s re-rating follows a CSL share price target of $116 set by Goldman Sachs a fortnight ago and the $105 ascribed to them last month by Credit Suisse analysts.

They are the only analysts setting bullish price target on CSL. According to the 13 analysts surveyed by The Wall Street Journal, 11 currently have a ‘buy’ recommendation on CSL shares, despite the average price target being $105.64 (i.e. below the current market price of shares).

Foolish takeaway

As can be seen from the graph above, CSL has proven to be one of the best blue-chip investments on the ASX – its share price has risen 2,332% in 15 years! It’s important to take analyst price targets with a pinch of salt and conduct your own extensive due diligence on every share you intend to buy.

Nevertheless, despite CSL shares arguably trading above their 12-month intrinsic values (i.e. they’re not a bargain today), I think long-term investors could do far worse than holding shares of CSL in their portfolios.

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Motley Fool writer/analyst Owen Raszkiewicz owns shares of CSL. Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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