CSL Limited (ASX: CSL) shares fell to a new 52-week low of $244.37 apiece in early trading on Tuesday.
The ASX 200 healthcare giant is currently trading at $248.93 a share, up 1.04%.
The S&P/ASX 200 Index (ASX: XJO) is down 1.32% at the time of writing.
One top broker says CSL is ripe for buying, with 36% upside potential over the next 12 months.
Broker backs CSL shares for major upside over next year
Top broker Morgan Stanley says CSL can go 36% higher over the next 12 months.
The broker has an overweight rating on the healthcare stock and a $334 price target.
In The Australian today, Morgan Stanley analyst Sean Laaman says:
If EPS momentum can be further enhanced through PBM execution, our valuation and price target may prove conservative.
On the back of PBM execution/articulation, the perceived risk regarding Injectafer generics competition may diminish.
Laaman notes that CSL shares have underperformed the market in recent times.
In the year to date, CSL stock has fallen 13% while the ASX 200 has fallen 0.12%.
The reasons for this are "now well understood".
He explains:
We think this is due to recovery to pre-pandemic plasma GM in FY26-FY28 has been slower than we anticipated, FcRn disruption in CIDP possible in FY25, and generic competition nears for V4's Injectafer in Europe.
Morgans is also backing CSL shares for significant share price growth.
As my Fool colleague James reports, Morgans has CSL on its 'best ideas' list.
The broker has an add rating on CSL and a $328.28 share price target.
Morgans says:
While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, 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 trading at 25x, a substantial discount (20%) to its long-term average.
