Where next for the CSL share price?

CSL shares could be heading higher according to one leading broker…

| More on:
Two medical researchers in white coats collaborate over a computer screen of data in a medical research laboratory.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • CSL shares are trading lower on Monday
  • This could be a buying opportunity according to analysts at Citi
  • Its analysts see 21% upside for its shares

The CSL Limited (ASX: CSL) share price has started the week in the red.

In afternoon trade, the biotherapeutics giant's shares are down 1.5% to $276.79.

Where next for the CSL share price?

According to a note out of Citi, its analysts believe the CSL share price could be heading higher from here.

The note reveals that its analysts have retained their buy rating and $335.00 price target on the company's shares.

Based on the current CSL share price, this implies potential upside of 21% for investors over the next 12 months.

What is the broker saying?

Citi has been looking at industry data and believes that it is pointing to continued improvement in plasma collections and strong underlying demand.

It believes this supports its view that the key drivers of the CSL share price will shift in the near future to product demand and the acquisition of Vifor Pharma.

It commented:

The latest quarterly results from Grifols, Takeda and Haemonetics, and recent comments from CSL are all highlighting the continued improvement in plasma collection and strong underlying demand for plasma products.

This is consistent with our view that over the next six months, we expect the market to shift its focus to the strong underlying plasma product demand, and the closure the Vifor deal, both of which should lead to strength in the share price.

Our FY23-24 EPS estimates remain 5-6% above consensus (we have included the Vifor consensus estimates in our forecasts). The next catalyst will be the closure of the Vifor transaction which is now expected to complete by the end of Sept (previously June).

All in all, the broker appears to see the CSL share price as trading at an attractive level for investors at present and I would have to agree due to the points outlined above.

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. has positions in 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 Scott Phillips.

More on Broker Notes

woman holding her baby and looking at her phone happy at the rising share price
Broker Notes

3 ASX All Ords shares that brokers tip will grow 30% to 40% this year

The experts say these three ASX All Ords stocks have great growth ahead of them.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

2 'materially undervalued' ASX 200 shares to buy while they're at 'attractive value'

Is there a better feeling in investing than grabbing stocks for cheap then watching while everyone else catches on to…

Read more »

A man sees some good news on his phone and gives a little cheer.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face due to his ASX shares going up and in particular the Computershare share price
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man in suit and tie is smug about his suitcase bursting with cash.
Broker Notes

These ASX shares could rise 20% to 50%

Analysts see a lot of value in these buy-rated shares.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Jess Amir
Investing Strategies

Wake up! 3 stocks to watch RIGHT NOW

This trio could be in for a huge few days. Moomoo's Jessica Amir explains why and how.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »