CSL Limited (ASX: CSL) shares have had an uncharacteristically poor year.
Since the start of 2023, the biotherapeutics giant's shares are down approximately 11%.
While that may be disappointing for shareholders, could it be a buying opportunity for others in 2024?
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CSL shares in 2024
A number of brokers believe that the company's shares are undervalued at current levels, which could bode well for their performance in 2024.
For example, Goldman Sachs recently upgraded them to a buy with a $309.00 price target. This suggests that CSL's shares could rise 20% over the next 12 months.
But the returns may not stop there. The broker believes that CSL is entering a very positive multi-year growth period. It said:
CSL is now entering a period of more capital-efficient growth, driving a sharp improvement in our ROIC forecast (+460bps by FY27E). This positive inflection also coincides with a period of historically-high earnings growth (+14% CAGR FY23-27E), which serves to amplify those incremental returns to shareholders.
Over at Citi, its analysts are also tipping some big returns from the company's shares. The broker recently put a buy rating and a $325 price target on them. This suggests a potential upside of over 26% for investors.
It notes that "CSL is trading on a PE FY25 of ~22x, a 6x discount to historical average."
Finally, the team at Morgans is also expecting big things from CSL's shares in 2024. So much so, it has the company on its best ideas list with an add rating and a $328.20 price target. This implies almost a 28% upside.
Morgans also highlights the discount its shares trade at. It commented:
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.
