S&P/ASX 200 Index (ASX: XJO) shares closed 0.59% higher at 8,589.2 points on Thursday.
Here are three ASX shares that the experts think are undervalued at their current share prices.
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3 ASX shares with plenty of upside: experts
CSL Ltd (ASX: CSL)
CSL is an Australian biotech and the biggest ASX 200 healthcare stock on the market.
The company has three divisions.
Seqirus is a world leader in influenza vaccines, Behring focuses on rare and serious diseases, and Vifor specialises in renal disease.
Morgans has a buy rating on CSL shares with a 12-month price target of $303.70.
CSL shares closed at $242.41, down 0.53%, on Thursday.
Therefore, the target implies a potential upside of 14% for investors who buy CSL shares at today's price level.
Morgans said:
We view CSL as materially undervalued, trading on an EV/EBIT of 18.2x, more than 25% below its 10-year average (24.7x).
Based on a conservative SOTP valuation, we estimate fair value of A$196bn, implying c35% upside from current trading levels.
Notably, the market appears to be valuing CSL on less than a single division, with a c10% discount to the core Behring business alone, while effectively assessing zero or negative value to Seqirus and Vifor.
We adjust our underlying earnings estimates lower by c4%, mainly on lower sales assumptions in Seqirus and Vifor, with our target price declining to A$303.70.
Ramelius Resources Ltd (ASX: RMS)
Macquarie has an outperform rating on this ASX 200 gold mining share with a 12-month price target of $3.10.
The Ramelius Resources share price closed at $2.40, up 2.56%, on Thursday.
Hence, the target price implies a potential upside of 29%.
Ramelius revealed strong preliminary full-year FY25 results this week.
Full-year gold production was 301,664 ounces, ahead of its guidance range of 290,000 ounces to 300,000 ounces.
Ramelius also expects its all-in sustaining costs (AISC) to be at the lower end of its guidance range of $1,550 to $1,650 per ounce.
Macquarie commented:
The 4QFY25 production result beat RMS' own expectations (which we were anchored to) and continued to demonstrate strong cash generation.
In the near term our valuation relies on completion of the SPR deal and key study results.
Ramelius is working through regulatory processes to merge with Spartan Resources Ltd (ASX: SPR).
Ramelius announced the 'transformational combination' in March.
Monash IVF Ltd (ASX: MVF)
Monash IVF shares closed at 74.5 cents on Thursday, down 0.68%.
Morgans has a speculative buy rating on Monash IVF with a 12-month share price target of $1.
The broker's price prediction indicates a potential 34% upside for investors.
The broker recently updated its earnings assumptions for the company following a second incident involving an incorrect embryo transfer.
The broker commented:
Despite earnings uncertainty, we think MVF's current valuation makes it a compelling takeover candidate for acquirers seeking scale in a structurally growing sector, with it trading at roughly half the multiple of recent industry transactions.
We have lowered our FY26/27 forecasts driven by greater market share loss assumptions.
