The CSL Limited (ASX: CSL) share price could be on the rise on Wednesday after being the subject of a positive broker note out of Goldman Sachs.
What did Goldman Sachs say?
According to the note, Goldman Sachs has been looking through the biotherapeutics company's R&D pipeline.
It has explored each of the 15 projects that are in or near active development. And, after assessing the data and likely regulatory pathway, the broker calculates a total risk-adjusted valuation of A$38 per share.
This leads to an increase in its price target to $312.00, which implies potential upside of 12% over the next 12 months. Goldman Sachs retains its buy rating.
Which products is Goldman bullish on?
Goldman is very positive on its clazakizumab, CSL842 and CSL964 products.
The broker said: "We believe the most compelling opportunities under development are within the Transplant franchise (clazakizumab, CSL842 and CSL964), for which we assign a total risk-adjusted valuation of A$24 per share (62% of total)."
Its analysts also note that CSL312 and CSL311 have a lot of promise.
"The factor XIIa antagonist is interesting (CSL312), as a potential flagship in HAE in the first instance, but later with possible applications in various coagulation indications, which could provide upside to our current valuation of A$3.3."
"Longer-term, the Fc multimer holds clear promise in various auto-immune indications and the push into respiratory markets with CSL311 could make sense (severe asthma, nasal polyposis, COPD)," the broker added.
Should you invest?
I agree with Goldman Sachs that CSL is a buy and believe it is well-positioned to deliver solid earnings growth over the next decade.
This is thanks to the aforementioned development pipeline, its growing plasma collection network, and the increasing demand for immunoglobulins.
Incidentally, in another note, Goldman slapped a neutral rating on Altium Limited (ASX: ALU) shares. It has a $33.55 price target on the design software provider's shares.
