Is the CSL (ASX:CSL) share price good value?

Is the CSL Limited (ASX:CSL) share price good value at the current level? Here’s what you need to know right now…

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If you’re interested in blue chip shares, then you might want to take a look at the CSL Limited (ASX: CSL) share price.

CSL is one of the world’s leading biotherapeutics companies with a portfolio of leading therapies and vaccines. This includes flu vaccines and countless plasma-based products.

What’s been happening?

CSL has been impacted both positively and negatively by the pandemic. While demand for flu vaccines have been increasing materially, its ability to collect plasma has been hurt by social distancing and other COVID-19 related headwinds.

The latter is bad news for CSL as plasma is a core ingredient in many of its most lucrative products. The shortage of plasma has driven up prices and is likely to impact its margins in FY 2022.

The good news is that plasma collections have been improving greatly and are expected to reach pre-COVID levels later this year. This is likely to mean that any margin pressures will be very short-lived.

Is the CSL share price in the buy zone?

According to a note out of Macquarie from last week, its analysts believe the CSL share price is in the buy zone. Macquarie has put an outperform rating and $312.00 price target on the company’s shares.

It isn’t the only broker that is positive on the company. Analysts at Citi have a buy rating and $310.00 price target on CSL’s shares at present.

The latter commented: “Over the last few weeks, most of CSL’s listed competitors have reported results. When we look at the data overall, it points to an improvement in the rate of plasma collection in April, which has been the main impediment to growth throughout the pandemic. It also points to continued strong demand for the end-product, in particular IG. Overall this gives us confidence in our Buy call on CSL, although we are yet to see the earnings trough for the company which will occur in FY22 given the long lead times from plasma collection to sale.”

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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