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Goldman Sachs tips CSL share price to hit $300

CSL Limited (ASX: CSL) shares are up 1.2% to $272.89 on the back of a research note out of Goldman Sachs’ healthcare desk this morning. 

The analysts have crunched the numbers and taken another look at CSL’s business lines to come up with a bullish new price target.

According to Goldman’s, CSL’s core immunoglobulin business is humming along with “market dynamics highly favourable”.

The analysts are forecasting three-year compound annual sales growth rates of 13% and 17% for CSL’s core Privigen and Hizentra immunoglobulin products. 

Overall the analysts have upgraded their earnings per share forecasts by 4% on average though FY 2020 to FY 2022. Goldman’s is forecasting CSL to earn US$4.69 per share in FY 2020 to place it on 39.5x FX-adjusted EPS around $6.90. 

On the back of the strong immunoglobulin sales, Goldman’s is forecasting EPS of US$5.53 in FY 2021 to place it on 33.5x FX-adjusted EPS around $8.14.

Goldman’s joins a number of other influential analysts including UBS, Morgan Stanley and Credit Suisse in delivering bullish price targets for CSL.

Goldman’s also has a buy rating on ResMed Inc. (ASX: RMD) shares. 

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Tom Richardson owns shares of CSL Ltd. and ResMed Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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