CSL Ltd (ASX: CSL) shares have been on form over the past few weeks.
So much so, since 11 April, the biotechnology giant's shares have risen over 10%.
Can this run continue or is it too late to buy? Let's find out what analysts are saying.
Is it too late to buy CSL shares?
The good news is that a large number of brokers believe that CSL shares can keep rising from current levels.
In fact, there are no less than eight major brokers that have the equivalent of buy ratings on its shares with price targets implying potential upside of 20% or more over the next 12 months.
One of those is Bell Potter, which has a buy rating and $335.00 price target. This suggests that upside of 30% is possible for investors buying at current prices.
Bell Potter has once again named the company on its Australian Equities Panel in May. These are its "panel of favoured Australian equities [that] offer attractive risk-adjusted returns over the long term." Commenting on CSL, the broker said:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~22x, representing a discount to its 10-year average of ~31x. Furthermore, the company will continue to deleverage the balance sheet over the next few years. Given the company's proven quality and growth prospects, we believe significant upside remains.
Another broker that is bullish on CSL shares is Goldman Sachs, which has a buy rating and $307.30 price target on them. It feels that its shares are undervalued based on its positive earnings growth outlook. It explains:
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.
Anyone else?
Other brokers that are bullish includes Morgan Stanley with an overweight rating and $313.00 price target, Morgans with an add rating and $329.26 price target, and Macquarie with its outperform rating and $360.30 price target.
All in all, this appears to show that CSL could be an ASX share to buy right now even after its recent rally.
