Why the CSL share price could be 'undervalued' at $293

These experts say CSL shares are primed to shoot higher.

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It's been a fairly happy Wednesday for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far today. At the time of writing, the ASX 200 is up a decent 0.25%, trading at 7,737.30 points. But the CSL Ltd (ASX: CSL) share price is doing even better this hump day.

CSL shares closed at $292.08 each yesterday evening. But today, the ASX 200 healthcare giant is up an enthusiastic 0.42% to $293.30.

Now while that gain would obviously be a welcome one for CSL investors, it still leaves this company down by more than 4% from its February 52-week high of $306.42.

But CSL owners would be used to a bit of stagnation by now.

After all, this is a company that last saw an all-time high (over $340 a share) back in early 2020. since then, CSL has pretty much treaded water, barring an unfortunate episode last year that saw the company get down to under $230 a share. 

Check that all out for yourself below:

However, this CSL share price stagnation has caught the eyes of a few ASX experts.

ASX experts rate CSL share price as a buy

One such expert is Toby Grimm of Baker Young. Speaking to The Bull this week, Grimm gave CSL a 'buy rating. Here's what he said in full:

This blood products company continues to screen as undervalued relative to its historic multiples and peers. New products and improving margins are expected to drive compound annual net profit growth of about 21 per cent over the next three years.

No doubt CSL investors will find that view comforting.

But Grimm isn't the only one eyeing off CSL right now. As my Fool colleague James covered last month, ASX brokers Morgans and Macquarie both see value in the CSL share price at present.

Morgans gave CSL an 'add' rating, as well as a 12-month share price target of $315.35:

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.

Macquarie was even more bullish. It slapped the company with an 'outperform' rating, alongside a share price target of $330. Going even further, Macquarie also stated that it believes CSL might even be worth $500 a share by 2027, thanks to the strength of its Behring division.

So, it seems that more than a couple of ASX experts see substantial value in CSL shares today. But let's see what the next 12 months and beyond hold in store for this ASX 200 healthcare stock.

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

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