CSL Limited (ASX: CSL) shares have proven to be one of the ASX's standouts over many years, but some investors are still all-aboard the blood plasma business.
CSL: Australia's best global business?
The chart above compares CSL shares to those of another major Australian company, BHP Billiton Limited (ASX: BHP). Although BHP has been a big company for a long time, it has drastically underperformed its smaller peer.
Is CSL going to $200?
According to The Wall Street Journal, 70% of analysts covering CSL shares are bullish on the company, though the average price target is $135.56. At the current share price of $133 that doesn't leave much room for error.
However, some analysts are confident that the fundamentals of the business will continue to improve. In July, Rob Tucker of the Chester High Conviction Fund said the blood plasma industry is likely to grow between 6% and 8% over coming years, with CSL holding a commanding share of the market.
Together with a potential widening of its profit margins, it is easy to see why some investors are willing to hold onto their shares despite its valuation.
However, in my opinion, investors may be waiting a little while for the CSL share price to have a '2' in front of it.
Foolish Takeaway
CSL is a well-managed, growing, globally diversified business with recurring revenue. Unfortunately, its success is no secret. Therefore, investors may have to be extraordinarily patient and wait for a compelling buying opportunity.
