CSL Ltd (ASX: CSL) shares have recently captured the attention of experts and investors.
On 19 August, CSL posted its FY25 result.
Heading into the result, CSL shares were widely considered an attractively valued ASX 200 stock. In July, wealthy investors had sold down Commonwealth Bank of Australia (ASX: CBA) shares in favour of CSL.
However, CSL's result stunned the market. In fact, they triggered a 17% decline, marking the company's largest one day decline since the company listed in 1999.
On Friday, CSL shares closed below $210.
Investors may be wondering if CSL shares are a good buying opportunity today.
Following the result, several brokers released research notes, detailing their views on CSL's result. They also provided updated price targets and recommendations.
On September 4, my Fool colleague Bronwyn Allen revealed the views of 5 experts which consider CSL shares a buy the dip opportunity.
Price targets ranged from $291.35 to $300. While the majority of experts cut their price targets following the FY25 result, they remain significantly above CSL's current share price, suggesting the ASX 200 stock is a buying opportunity.
One view that wasn't disclosed was the opinion of investment banking powerhouse JP Morgan Chase & Co (NYSE: JM).
Let's find out whether JP Morgan's price target falls in line with other brokers.
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JP Morgan releases new CSL research note
On 20 August, JP Morgan unveiled a new research note on CSL shares that analysed the company's FY25 result.
The investment bank cut its price target from $305 to $282, marking the lowest price target among the expert views previously revealed.
Behind this price cut was the shift in timing surrounding CSL's cost reduction program. JP Morgan said, CSL promised a larger cost reduction program than they had expected. However, they will take longer to materialise, and there will be almost no benefit in FY26.
JP Morgan also commented on CSL's decision to spin off its vaccine business Seqirus, which has been criticised by investors.
The financial impact of the spin-off is difficult to estimate at this stage. We are skeptical it would be accretive for shareholders but it should ensure that the remaining CSL business offers a better growth profile. We are also cautious that a change from NPATA guidance would be logical post the spin-off but this would result in a further degradation of sell-side profit forecasts and hence the PE multiple.
CSL currently trades at a forward price-to-earnings ratio (PE) of 20 times. This is well below its historical average of around 32 times earnings.
How much upside could CSL shares deliver?
Despite flagging several concerns in its research note, JP Morgan maintained a positive view on the stock, given its current valuation.
"We view CSL as attractively valued and retain our Overweight rating." JP Morgan wrote.
Its price target suggests the ASX 200 healthcare stock could rise around 35% in the next 12 months.
