A new year is here, so what better time to look at making some new portfolio additions?
One option that is highly rated right now is CSL Limited (ASX: CSL) shares.
As things stand, a good number of brokers have the equivalent of buy ratings on the biotechnology giant with price targets offering meaningful upside.
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CSL shares tipped to rise
One of the more bullish brokers out there is Citi. Its analysts currently have a buy rating and a $325 price target on CSL's shares. This implies a potential upside of 14% for investors over the next 12 months. The broker also expects a 1.5% dividend yield in FY 2024, boosting the total potential return beyond 15%.
In response to its capital markets day late last year, the broker said:
CSL held its combined capital markets and R&D day. The information presented was consistent with consensus expectations. CSL remains confident in its ability to generate double-digit EPS growth over the medium-term, in-line with consensus/Citi forecasts of 14%/15% EPS CAGR over FY23-28e.
Elsewhere UBS has a buy rating and $340 price target, Macquarie has an outperform rating and $321 price target, and Morgans has an add rating and $328.20 price target. The latter broker commented:
[W]e 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.
Finally, Goldman Sachs is bullish and has a conviction buy rating and a $309 price target on CSL's shares. It believes the company is about to enter a very positive period. It said:
CSL is now entering a period of much more capital-efficient growth (revenue/margins inflecting positively whilst capex is guided down -30% in FY24E, and no more material acquisitions likely through the mid-term).
Goldman expects this to underpin an earnings per share compound annual growth rate of 14% between FY 2023 and FY 2027.
Overall, the broker community appears to see CSL as a great portfolio holding in 2024 and beyond.
