CSL Ltd (ASX: CSL) shares have faced a tough year. Whilst the broader market has extended to new highs in 2024, shares in the biotech giant are less than 1% in the red.
They are currently swapping hands at $285.30 apiece, down from highs of more than $312 back in July.
But despite the recent dip, many analysts believe CSL shares are undervalued and present a solid long-term investment opportunity. Let's see what the experts say.
What's driving CSL shares down?
Several factors have weighed on CSL shares this year. One of the primary concerns is related to the company's acquisition of Swiss company Vifor Pharma, which specialises in iron deficiency treatments.
Despite the initial optimism around this purchase, Vifor's performance hasn't met expectations. This has impacted CSL's earnings and contributed to the downtrend since full-year earnings were released in August.
Additionally, CSL recently faced regulatory hurdles with some of its product trials. US regulators flagged manufacturing concerns over a new treatment in CSL's pipeline.
The company has subsequently pulled studies on three therapies due to regulatory and timing issues.
Shareholders were so unhappy with CSL's performance this year that a quarter voted against the CEO's proposed remuneration package at the AGM.
Brokers are bullish
Sifting through the smoke and looking more long-term, brokers are generally bullish on CSL shares. According to CommSec, the stock is rated a buy from consensus.
Analysts at Citi, Bell Potter, and Morgans all maintain a positive outlook on CSL. They highlight the company's core CSL Behring business as a key growth driver.
Citi retained its buy rating and a $345.00 price target on the stock, citing strong growth in CSL's immunoglobulin and albumin sales.
Meanwhile, Bell Potter echoes this sentiment. It sees CSL's double-digit earnings growth potential as attractive despite near-term challenges.
With the shares currently trading at a discount to historical averages, the broker argues now might be an ideal entry point.
Morgans, on the other hand, values the business at $330.75 per share. It, too, says CSL shares are a buy and has a strong view of the Behring business.
There are no sell ratings on the stock either, according to CommSec data.
Foolish takeout
Despite the challenges, CSL shares are widely regarded as undervalued by experts. The market has been swift in selling the stock since August.
But for those who are long-term oriented, the company's market position and earnings growth forecasts remain on check.
In the last 12 months, the stock is up more than 15%.
