Can CSL shares reach $300 by Christmas?

Can CSL see its old highs again by the end of the year?

| More on:
Male doctor in a lab coat working at laptop looking serious.

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

The past few months have been hard for the CSL Limited (ASX: CSL) share price. Yesterday, CSL shares closed at $258.21 each, down 0.9% for the day. But it was only late last month that this ASX 200 healthcare share had printed a new 52-week low of $228.65.

The all-time highs that we saw way back in early 2020 of over $340 a share seem like a distant fever dream, given what has happened over the subsequent almost four years:

But onto sunnier times, those being the past few weeks. Since the end of October, the CSL share price has rebounded enthusiastically. The company has gained an impressive 11.95% since 30 October, and almost 13% since hitting that new 52-week low.

But many investors might be wondering whether CSL has the potential to reclaim its historic high watermarks. For it to do so, it would first have to cross back over the $300 a share hurdle. So what is the likelihood of CSL achieving this by Christmas?

Firstly, it's worth pointing out that giving out the year's share price targets for ASX shares is a fraught business. But giving out one-month targets? That's a pretty shaky science. ost one-month predictions aren't worth the paper they're written (or typed) on. And this one is no different.

But we can still speculate. After all, as a CSL shareholder myself, no one would be more delighted to see the company at $300 a share.

Can CSL hit $300 a share by Christmas?

So let's do some maths. For the CSL share price to get back to $300, it would have to gain approximately 16.18% from yesterday's closing share price in ~35 days.

Now, if CSL had an earnings report, quarterly update or any other major ASX announcement scheduled for the coming month and a bit, it might be remotely possible for the healthcare giant to plausibly make up this ground.

However, CSL has nothing of the sort scheduled between now and the end of the year. Not even any dividend payments.

As such, barring a major unforeseen event, it's unlikely that anything coming out of the company, at least that is a reasonable assumption, is going to move CSL shares that enthusiastically before Christmas.

Now, we could see some buy ratings from ASX brokers that might have the potential to move the CSL share price around a little.

However, we've already seen quite a few of these over November so far. Just this week, my Fool colleague Bronwyn discussed broker UBS' buy rating on CSL and 12-month share price target of $340. Not to mention some other bullish views from other brokers. So again, this avenue to $300 looks unlikely as well.

If I were a betting man, I would feel pretty comfortable wagering good odds that CSL is not going to be a $300 share by Christmas. But nothing is ever certain on the markets, and stranger things have happened.

Motley Fool contributor Sebastian Bowen 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 recommended CSL. 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

Scientist with headache, stress and fatigue with woman, overworked with overtime for science breakthrough. Medical research, scientific innovation and senior female, burnout and migraine in lab.
Healthcare Shares

Why is the Mesoblast share price in a trading halt?

Is Mesoblast raising funds again? Let's find out.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

The CSL share price return tripled the ASX 200 in November

November saw a very healthy return for CSL shares.

Read more »

A male doctor wearing a white doctor's coat shrugs and holds his hands up to indicate the unimpressive CSL share price as a result of OOVID-19
Share Market News

Here's why you might have just bought Healius shares

Two of the most popular super funds just loaded up on this healthcare stock.

Read more »

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

Here's why this ASX 200 healthcare stock is roaring 13% higher on Wednesday

This healthcare company is outperforming every other stock within the ASX 200 today.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

Could CSL stock be a millionaire-maker at $261

Does the exceptional biotech company still harness the power to make an investment today worth a million in the future?

Read more »

Two happy scientists analysing test results in a lab
Healthcare Shares

Why are Mesoblast shares charging 5% higher today?

This beaten down biotech is having a strong session. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Healius share price rallies amid corporate reset

An outgoing chair and a revitalised balance sheet. Healius is undergoing a makeover.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Imugene share price jumps 32% on FDA news

Here's why this biotech is having a strong start to the session.

Read more »