What's in store for the CSL share price in June?

Are CSL shares a buy in June?

| More on:
A woman looks nonplussed as she holds up a handful of Australian $50 notes.

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

The CSL Limited (ASX: CSL) share price has been out of form in 2022.

Since the start of the year, the biotherapeutics giant's shares have fallen 8% to $268.04.

Will things start to improve for the CSL share price?

While the weakness in the CSL share price in 2022 has been disappointing, one leading broker appears to see it as a buying opportunity.

A recent note out of Citi reveals that its analysts have a buy rating and $335.00 price target on the company's shares.

Based on the current CSL share price, this implies potential upside of 25% for investors over the next 12 months.

What is the broker saying?

CSL believes that recent industry data is pointing to continued improvement in plasma collections and strong underlying demand.

The broker appears to see this as a sign that trading conditions are normalising, which will lead to the market shifting its focus from supply to demand. And with demand remaining strong, it believes this will be good news for the CSL share price.

Citi 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.

Citi also feels that the market is underestimating CSL's growth potential in the coming years and is forecasting stronger than consensus earnings.

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, Citi appears to believe now could prove to be an opportune time to invest based on this note.

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 Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »