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CSL share price tipped to hit $230 in 2019

The CSL Limited (ASX: CSL) share price has continued its positive run and is up almost 0.5% to $195.75 in afternoon trade.

This small gain means the global biotechnology company’s shares are now up 8.5% in a month and 39% over the last 12 months.

Can the CSL share price climb higher from here?

The good news for non-shareholders is that these gains may not have ended yet and the CSL share price could potentially run much further.

That is the opinion of analysts at Credit Suisse who retained their outperform rating and $230.00 price target on CSL’s shares this morning.

This price target implies potential upside of approximately 17.5% for its shares over the next 12 months.

According to the note, the broker has analysed recent industry data in the United States and it appears to show that immunoglobulin volume growth is running ahead of expectations.

The broker believes this reflects strong underlying demand, which is likely to underpin CSL’s growth in FY 2019.

Incidentally, Credit Suisse isn’t the only broker with a $230.00 price target on CSL’s shares. Analysts at Macquarie Group Ltd (ASX: MQG) are equally bullish and have the same price target.

Should you invest?

I agree with Credit Suisse and Macquarie on CSL and believe it would be a great share to buy right now.

Thanks to strong immunoglobulin demand, its growing plasma collection network, fledgling influenza business, and lucrative pipeline of future drugs, I feel CSL is capable of delivering solid earnings growth over the long term that justifies the premium its shares trade at today.

In addition to CSL, healthcare peers ResMed Inc (ASX: RMD) and Volpara Health Technologies Ltd (ASX: VHT) could be worth a look as well. Although the latter may be only suitable for investors with a high tolerance for risk due to being a small cap share.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended ResMed Inc. 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 Scott Phillips.

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