I missed out on CSL shares under $300. Is it too late to buy?

Brokers remain optimistic of the ASX 200 healthcare giant's stock.

| More on:
A woman looks questioning as she puts a coin into a piggy bank.

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

  • The CSL share price surpassed the $300 milestone last month and currently trades at $305.26
  • The company's defensive qualities and decent earnings might have driven its recent gains
  • Brokers are still bullish on the stock, with one tipping it to rise another 11% 

Those hoping to buy shares in S&P/ASX 200 Index (ASX: XJO) healthcare giant CSL Limited (ASX: CSL) for under $300 apiece appear to have missed their window. At least for now.

The stock bounced above the milestone last month after dipping as low as $273.40 earlier this year and to $254.30 in June 2022.

Today, the CSL share price is trading at around $305.26.

So, with those gains under its belt, could the biotechnology icon's stock be spent, or is it just warming up?

What's been going right for the ASX 200 healthcare giant?

Shares in CSL have long been considered defensive. That means the company's earnings will likely keep coming despite a broader economic slowdown.

Perhaps that's part of the reason why investors have been bidding the stock higher as of late. Rising rates and persistent inflation have likely left many turning towards the defensive end of the ASX.

Another reason behind the CSL share price's recent gains could be the company's earnings.

It grew its revenue by 19% in the first half and bolstered its interim dividend by 3% to $1.622 per share. Though, its net profit after tax (NPAT) slipped 8%.

And, fortunately for eager would-be investors, brokers think the ASX 200 healthcare share could continue growing from here.

Brokers remain bullish on CSL shares

Many brokers are expecting more gains from CSL shares in the coming months and years.

Morgans is one such broker. It tips the stock to surge to trade at $337.92 – a potential 10.7% upside, my Fool colleague James reports. The broker is said to have commented:

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 ~30x.

Meanwhile, Morgan Stanley forecasts the stock to rise to $339 – 11% higher than it currently sits – amid growing plasma collection volumes.

Finally, UBS is hopeful, though less so. It was recently said to expect the CSL share price to rise to $330– representing a potential 8.1% upside.

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. 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

Portrait, confidence and team of doctors in the hospital standing after a consultation or surgery. Success, healthcare and group of professional medical workers in collaboration at a medicare clinic.
Healthcare Shares

Macquarie's top 3 ASX stock picks in the healthcare sector

Top broker has revealed 3 healthcare stocks with upside. 

Read more »

Two lab workers fist pump each other.
Healthcare Shares

3 of the best ASX 200 healthcare shares to bring your portfolio to life

These shares could be just what the investment doctor ordered according to analysts.

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Share Gainers

Guess which ASX All Ords stock just rocketed 28% on a new commercial contract!

The ASX All Ords stock has grabbed plenty of investor interest on Tuesday.

Read more »

Five healthcare workers standing together and smiling.
Healthcare Shares

Is the CSL share price a buy? Here's a top broker's view

Is this stock a healthy opportunity? Let’s have a look.

Read more »

Man ecstatic after reading good news.
Healthcare Shares

Which ASX company has just secured FDA approval?

This stock just announced some big news.

Read more »

Health professional putting on gloves.
Healthcare Shares

How will Ansell shares navigate tariffs according to Macquarie?

The next two years could be a challenging period for the PPE company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX 200 stock is surging 18% on big news

This stock is getting a lot of love from investors on Monday.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Healthcare Shares

CSL shares are having a tough time recently. Are they a buy or a sell?

Is now a good time to jump in and buy this blue chip star?

Read more »