Is the CSL (ASX:CSL) share price in the buy zone?

Is it time to buy CSL shares?

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If you’re looking for blue chip shares to buy, then the CSL Limited (ASX: CSL) share price could be worth considering.

The biotech giant is one of the biggest companies on the local share market and has been tipped as a buy by a leading broker.

Strong businesses and long term growth potential

CSL is the biotech company behind the CSL Behring and Seqirus business. The former is a specialist in plasma-based products, whereas the latter specialises in vaccines.

These two businesses have been driving solid sales and profit growth for CSL in recent years. And this looks set to continue long into the future thanks to increasing demand for its core therapies and vaccines, and its lucrative research and development (R&D) pipeline.

In respect to the latter, each year CSL reinvests approximately 11% of its sales into its R&D activities. This ensures that the company has a pipeline of products that have the potential to generate millions and potentially even billions of dollars in sales each year.

In its pipeline at present are CSL112 and clazakizumab. CSL112 is a novel apolipoprotein A-I infusion therapy that has been shown to have an immediate and significant impact on the ability to remove cholesterol from arteries. Whereas clazakizumab is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion according to analysts.

Is the CSL share price in the buy zone?

The team at Morgans are positive on the CSL share price. A recent note reveals that they currently have an add rating and $324.40 price target on its shares.

It commented: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs.”

This could make it worth considering the CSL share price with a patient and long term view.

Should you invest $1,000 in CSL right now?

Before you consider CSL, you'll want to hear this.

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Motley Fool contributor 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 and has recommended 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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