The CSL Limited (ASX: CSL) share price had an eventful week.
Although the biotherapeutics giant's shares recorded a small weekly gain, that's only telling half the story.
Following the release of the company's full year results, the CSL share price was down as much as 6% before staging a swift recovery.
Where next for the CSL share price?
The good news is that one leading broker believes the CSL share price is heading higher from here.
According to a note out of Morgans, its analysts have retained their add rating with a trimmed price target of $321.30.
Based on the current CSL share price of $294.67, this implies potential upside of 9% for investors over the next 12 months.
What did the broker say?
CSL's FY 2022 results were a bit of a mixed bag according to Morgans. It commented:
FY22 results were slightly softer than expected, albeit in line with management's assumptions, with net profit falling 6% in cc on 3% revenue growth. Seqirus was the standout on strong demand for influenza vaccines, while Behring profit fell as plasma-based products were constrained on tight supply and higher costs, although certain Specialty product surprised to the upside. Encouragingly, plasma collections are above pre-pandemic levels, and while industry wide challenges remain (eg staffing; increased costs), the worst appears behind us.
And while the company's guidance "disappointed", the broker highlights that "underlying growth is solid (11-14%) and excludes Vifor growth."
Overall, Morgans acknowledges that there are still some near term challenges, but appears to believe the company is well-placed to overcome them and deliver strong growth in the future. It explained:
While near term challenges remain and plasma inventories will need to be rebuilt over time, strong plasma collection growth and ongoing demand across both Behring and Seqirus underpin strong growth and continued momentum.
