CSL Ltd (ASX: CSL) shares had another poor session on Wednesday.
The biotechnology company's shares were down 1.5% to $252.92.
This means that they are now down 20% from their 52-week high.
It also means that CSL's shares are now trading at their cheapest levels in nine years according to one leading broker. So, is this your sign to buy? Let's see what the broker is saying.
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Should you buy CSL shares?
Bell Potter thinks that this would be a great time to lead up on the company's shares.
Especially given the strength of the CSL Behring business, which it expects to underpin double-digit earnings growth over the medium term.
Commenting on the company, this morning the broker said:
~70% of CSL earnings are driven by Behring, a highly defensive business treating rare and serious diseases. CSL sold off following the 1H25 result, weighed down by a poor Seqirus performance. However, FY25 guidance remained unchanged as Behring growth is expected to offset headwinds facing the smaller Seqirus unit.
For example, Behring's largest product, Ig, grew sales strongly in CY24 at +17% and captured share from key peers Takeda (+12%) and Grifols (+15%). The continued plasma market growth (especially Ig), alongside CSL's share gains and margin recovery, reinforces our confidence in Behring driving double-digit earnings growth for the group in the mid-term. While negative US vaccine sentiment is unlikely to abate near-term, we continue to view CSL as high quality with strong earnings growth, trading at a 12m fwd PE of 22x, a 9-year low.
Big return potential
According to the note, the broker has put a buy rating and $335.00 price target CSL's shares.
Based on its current share price, this implies potential upside of 32% for investors over the next 12 months.
To put that into context, a $10,000 investment would turn into $13,200 by this time next year if Bell Potter is on the money with its recommendation.
But it isn't just Bell Potter that is bullish on this blue chip star. Goldman Sachs also recently tipped the company's shares as a buy. It said:
Our Buy recommendation for CSL is driven by (1) Strong growth in the IG market despite the entry of new drugs (anti-FcRn), (2) CSL market share gains in the IG market, Hemophilia, Hereditary Angiodema (HAE) and influenza vaccines, and (3) Gross Margin accretion driven by operational improvements to its cost base. We believe CSL's valuation multiple de-rate is onerous considering the growth outlook, particularly for IG therapies.
Goldman has a buy rating and $318.40 price target on its shares.
