CSL Limited (ASX: CSL) shares having a positive start to the week.
In afternoon trade, the biotherapeutics company's shares are up 1% to $297.29.
This leaves CSL's shares on the cusp of breaking through the $300 mark once again.
Where are CSL's shares heading?
The good news for investors is that one leading broker believes that CSL's shares can rise beyond the $300 mark and keep on climbing.
According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on the company's shares.
Based on where its shares trade today, this implies potential upside of more than 14% for investors over the next 12 months.
What did the broker say?
Citi notes that the company recently held its research and development (R&D) day.
Its analysts highlight that CSL plans to continue spending over US$1 billion on its R&D activities each year for the foreseeable future. And with exciting potential therapies such as CSL 112 in its pipeline, it's hard to argue against this level of investment.
Citi commented:
CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3.
Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.
