The CSL share price leapt higher in May. What's next?

We check the latest on the ASX biotech giant and what may lie ahead.

| More on:
A group of medical researchers stands side by side with each other wearing white coats in their research laboratory with scientific equipment in the background.

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

Key points

  • CSL shares climbed higher in May
  • The biotechnology company performed better than the wider healthcare sector during the month
  • Analysts are positive on the outlook for the CSL share price

The CSL Ltd (ASX: CSL) share price forged ahead in May, but could it go even higher in the future?

CSL shares rose nearly 2% from $300.58 each at market close on 28 April to $306.39 apiece at market close on 31 May. In today's trade, the CSL share price is up a further 1.21% to $310.09 at the time of writing.

Let's take a look at what's been going on with the CSL share price.

How did May pan out?

CSL outperformed the S&P/ASX 200 Healthcare Index (ASX: XHJ) in May. The index rose just 0.06% during the month.

CSL delivered a shareholder briefing to the market on 29 May. CSL shares rose more than 1% on the day.

The company said it is the fifth-largest global biotechnology company in the world, currently ranking number one for protein therapies and number two for influenza vaccines.

CSL said it expects strong plasma collection and immunoglobin growth to continue. The company also sees untapped potential in its iron deficiency segment and predicts the renal market will grow at low double-digits in the mid-term.

CSL received positive broker coverage during May. The team at Morgan Stanley retained an overweight weighting and placed a $339 price target on the company's share price. This implies a 9.3% upside for CSL, based on the current share price.

In making the forecast, CSL noted one of its rivals has indicated plasma collection costs have fallen. This may be also a positive sign for CSL.

Looking ahead, UBS has also recently placed a $330 price target on CSL shares, as my Foolish colleague James reported recently.

The broker believes CSL is "well-positioned for growth" and has a strong development pipeline. The UBS price target implies an upside of 6.4% based on the current share price.

Share price snapshot

The CSL share price has jumped 13% in the past year.

This ASX healthcare share has a market capitalisation of more than $149 billion based on the latest share price.

Motley Fool contributor Monica O'Shea 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. 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 doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

3 ASX 200 healthcare stocks that could deliver big returns for investors

Analysts see a lot of value in these stocks at current levels.

Read more »

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline
Healthcare Shares

Why are so many top fundies overweight on CSL shares?

This is a healthy opportunity, according to a number of fund managers.

Read more »

Scientist looking at a laptop thinking about the share price performance.
Share Fallers

Why did this ASX All Ords stock just crash 16%?

Investors are punishing this ASX All Ords stock on Thursday. But why?

Read more »

woman in lab coat conducting testing representing biotech
Healthcare Shares

Can the CSL share price really reach $500 in just 3 years?

Leading analysts are expecting big returns from CSL shares in the months ahead.

Read more »

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.
Healthcare Shares

Why two brokers have named this ASX 200 stock as a best buy

Investors may want to pounce on this high-quality stock before it's too late.

Read more »

A young man goes over his finances and investment portfolio at home.
Healthcare Shares

What could $5,000 invested in CSL shares become in 1 year?

Let's see what sort of returns analysts are tipping for this ASX giant.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Why is everyone talking about Mesoblast shares?

ASX biotech share Mesoblast has been grabbing plenty of investor attention recently.

Read more »

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition
Healthcare Shares

Why the Mesoblast share price can rise another 60%

The big gains may not be over according to Bell Potter.

Read more »