The 'tide is beginning to turn': CSL (ASX:CSL) share price tipped to rise

CSL shares could be on an upward trajectory…

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Key points
  • CSL shares have been on fire since the release of its half year results
  • One leading broker appears confident the tide is turning for plasma collections
  • It believes its shares are in the buy zone at current levels

The CSL Limited (ASX: CSL) share price is shooting higher again on Thursday.

In afternoon trade, the biotherapeutics company's shares are up a sizeable 5% to $276.18.

This means the CSL share price is now up an impressive 14% in the space of just two days.

A doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

Image source: Getty Images

Why is the CSL share price charging higher?

Investors have been bidding the CSL share price higher since the release of its half year results on Wednesday.

For the six months ended 31 December, CSL reported a 5.3% increase in revenue to US$6,041 million but a 5% constant currency decline in net profit after tax to US$1,722 million.

However, getting investors excited was management speaking positively about the outlook for plasma collections and upgrading its full year profit guidance.

The tide is turning

The team at Morgans remains positive on the CSL share price and has put an add rating and $327.60 price target on its shares. This implies potential upside of almost 19% for investors even after its recent gains.

Morgans commented: "CSL – 1H above expectations; the "tide is beginning to turn" 1H results were better than expected, albeit in line with management's assumptions, with net profit down 5% in cc on 4% revenue growth. Seqirus was the standout on pandemic driven demand for influenza vaccines, while Behring went backwards as plasma-based products were constrained on tight supply and higher costs, although certain Specialty product saw gains."

"Promisingly, plasma collections continue to improve, although remain slightly below pre-pandemic levels, and while industry wide issues remain (eg Omicron; staffing; increase costs), the worst appears behind us," it added.

All in all, it may not be too late for investors to pick up CSL shares, according to this top broker.

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 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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