Should I buy CSL shares before this month's earnings update?

Should this healthcare share be in your portfolio this month?

| More on:

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

CSL Limited (ASX: CSL) shares have been positive performers over the last 12 months.

As you can see on the chart below, the biotherapeutics giant's shares are up 15% since this time last year.

This has been driven by improving plasma collection conditions, which is expected to be a big boost to its earnings in the coming years.

A doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

Image source: Getty Images

Should you buy CSL shares before it reports its earnings?

While buying a share before it reports earnings carries risks, that hasn't stopped Morgans from adding CSL's shares to its best ideas list this morning.

According to the note, the broker has put it on its list with an add rating and $312.20 price target.

Morgans best ideas list is home to the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are also its most preferred sector exposures.

The note reveals that CSL was added to the list this month in the place of Healius Ltd (ASX: HLS). Morgans likes CSL due to its belief that 2023 could be the "break out" year for the company following a tough period during the pandemic. The broker explained:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long term forward multiple of 31.5x

Morgans isn't alone with its positive view on CSL's shares. This morning, Morgan Stanley has reiterated its overweight rating and notably higher price target of $354.00.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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

A small child carrying a brief case tries to reach an elevator button outside closed elevator doors.
Healthcare Shares

Up 1,636%, but can 4DMedical shares reclaim their record high?

Can the US growth story drive the ASX star back to records?

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Healthcare Shares

Mesoblast shares: Q4 earnings top projections

Ryoncil® uptake has exceeded initial projections

Read more »

A woman leans forward with her hands shielding her eyes as if she is looking intently for something.
Healthcare Shares

Up 36%: Can CSL shares keep rebounding?

Find out what experts expect from CSL shares next.

Read more »

A man looking at his laptop and thinking.
Healthcare Shares

Is CSL a fallen ASX giant to buy in July?

Confidence has been shaken, but I think the long-term opportunity remains attractive.

Read more »

A sad looking scientist sitting and upset about a share price fall.
Healthcare Shares

This red-hot ASX healthcare share hit a speed bump. What next?

The tech company must convert innovation into profits to justify its lofty valuation.

Read more »

Two health workers taking a break.
Healthcare Shares

Top broker tips 37% upside for this exciting ASX healthcare stock

This healthcare stock is one to watch.

Read more »

A woman puts her fingers in her ears with a pained expression on her face with her eyes closed as though trying to block hearing bad news or an unpleasant loud noise.
Healthcare Shares

Cochlear shares are slipping again. Is the comeback already over?

The healthcare stock needs evidence of recovering demand before rallying further.

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them.
Healthcare Shares

ResMed's $490m MatrixCare sale: What it means

ResMed announces $490 million sale of MatrixCare and future shareholder returns.

Read more »