The CSL (ASX:CSL) share price is now well above $300. Is it on a roll?

CSL shares have been pushing higher recently…

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The CSL Limited (ASX: CSL) share price was on form again last week.

The biotherapeutics giant’s shares outperformed the market and rose 3% to end the period at $314.48.

This is the highest level the CSL share price has closed at in 2021.

Is the CSL share price on a roll?

The CSL share price certainly appears to be on a roll. This latest gain means its shares are now up 10% since this time last month. They are also up an impressive 30% since hitting a 52-week low of $242.00 in March.

The good news is that one leading broker still believes the company’s shares could rise a touch further from here.

A recent note out of Morgans reveals that its analysts have an add rating and $324.40 price target on its shares.

Why is the broker positive on CSL?

While Morgans acknowledges that FY 2022 will not be an easy year and CSL is likely to report a decline in its earnings, the broker believes the headwinds the company is facing are short term and not structural.

It commented: “FY22 guidance is targeting cc NPAT between US$2,150-2,250bn (-9% to -5%) on revenue growth between 2-5%, with management flagging a “transitional year”, core plasma products “robust”, but margins contracting on increased costs, and Seqirus strength ongoing.”

“Our FY22-24 earnings forecasts decrease up to 6.3%, mainly on lowered GM (350bp) and increased operating expenditures across the Behring division,” it added.

Morgans concluded: “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.”

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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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