The CSL Limited (ASX: CSL) share price may have been one of the best performers on the market this year with its 43% gain, but one leading broker believes it can still go higher from here.
According to a note out of Credit Suisse, analysts at the investment bank have retained their outperform rating and increased the price target on its shares to $155.00.
With its shares currently priced at approximately $145.00, this price target implies potential upside of almost 7% for the biotherapeutics company's shares.
The broker has lifted its price target after its review of recent data suggested that immunoglobulin volume growth in the United States is ahead of expectations due to strong underlying demand.
While this growth is expected to moderate in the long-term, Credit Suisse appears to believe that the company is well-positioned at present to profit greatly from this demand.
Should you invest?
While it certainly is no longer the bargain buy it was at the start of the year, I would still agree with Credit Suisse that CSL is a buy.
Thanks to its quality management team, its market-leading immunoglobulin business, and its almost profitable Seqirus influenza business, I believe the company is capable of delivering above-average bottom line growth over the next decade.
In my opinion this more than justifies the premium its shares trade at today.
In light of this, I think it is one of the best long-term investment options in the healthcare sector alongside the likes of Telix Pharmaceuticals Ltd (ASX: TLX) and Ramsay Health Care Limited (ASX: RHC).
