Is buying CSL shares right now a smart move?

Experts are tipping a strong recovery for the healthcare stock.

Key points
  • The CSL share price could be about to embark on a green streak if bullish experts are to be believed
  • The stock is still trading around 20% below its pre-pandemic highs
  • But one expert thinks that, if all goes well for the stock, it could rocket beyond its previous record high

The CSL Limited (ASX: CSL) share price still hasn't recovered to its pre-pandemic level, which saw it trading solidly above the $300 mark.

Indeed, the S&P/ASX 200 Index (ASX: XJO) healthcare stock is nearly 20% lower than the record high of $342.75 it posted in February 2020.

Could things be about to turn around for the CSL share price? Some experts are tipping it to do big things from here.

Right now, the CSL share price is $275.98.

A scientist examining test results.

Image source: Getty Images

Is now a good time to buy CSL shares?

It's been a rough couple of years for the CSL share price despite plenty of exciting happenings at the company.

Most obviously, it completed its $16 billion acquisition of Swiss giant Vifor Pharma earlier this year.

The ASX-listed healthcare favourite also recently revealed that, Vifor Pharma's contribution included, it expects to post between US$2.7 billion and US$2.8 billion of net profit before tax and amortisation for financial year 2023.

The team at Morgans was pleased by the news, retaining its buy rating and adjusting its price target for CSL shares to $312.20, my Fool colleague James reports. That represents a potential 13% upside.

The broker said strong plasma collections and demand, as well as the addition of Vifor Pharma, "portends strong growth momentum".

Meanwhile, Goldman Sachs remained neutral on the stock following its most recent announcement, tipping it to lift to $291 – a potential 5% gain.

Tribeca Investment Partners portfolio manager Jun Bei Liu is also hopeful about the stock. She said it was one of numerous in the space trading at a reasonable valuation, saying, courtesy of Livewire:

We do think healthcare will perform very well in an uncertain environment. These companies will deliver very strong earnings growth regardless of the economic outlook.

But the most bullish expert is Fairmont Equities founder Michael Gable. My Fool colleague Tony quoted the expert as telling media:

In some ways, CSL might have dropped off people's radar because since the COVID lows [the share price] hasn't really done anything.

It bottomed in February… and now it's starting to outperform the broader index.

You could see CSL with a four in front of it potentially by the end of next year, if it breaks out.

To reach the $400 mark, the CSL share price would have to gain around 45%. No doubt plenty of investors will have their fingers crossed for such a rise.

Motley Fool contributor Brooke Cooper 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. and Goldman Sachs. 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.

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