The CSL Limited (ASX: CSL) share price could return to its glory days if experts are on the mark.
The biopharmaceutical company’s share price finished the day at $261.86, a 1.11% fall. On 21 February 2020, the company’s shares were trading at $336.40.
Let’s take a look at what analysts think could happen to the CSL share price.
Positive broker coverage
CSL will “find its mojo again”, expert FNArena founder Rudi Filapek-Vandyck has predicted. In fact, Filapek-Vandyck has recently bought more CSL shares himself, as my Foolish colleague Tony reported. He said:
The business model was disrupted because of COVID… If I look forward to the next two to three years, I see an environment where CSL will again come to the fore.
If we’re getting an environment where earnings forecasts are falling and companies are issuing profit warnings,… you want to go to the reliability and the safety of CSL
Citi analysts have also recently kept a buy rating on the CSL share price and a $335 price target. That’s 28% more than the current share price. As my Foolish colleague James reported, Citi expects plasma collection improvements to have the most significant impact on the company’s shares.
Morgans is also positive on the company. The broker has put an add rating and $327.60 price target on CSL shares. This broker also cited plasma collections, saying:
Promisingly, plasma collections continue to improve, although remain slightly below pre-pandemic levels, and while industry wide issues remain (eg Omicron; staffing; increase costs), the worst appears behind us.
While near term challenges remain, the ongoing recovery in plasma collections, coupled with management’s confidence, paints a favourable earnings picture.
CSL was also recently listed as an ASX “hall of famer” share by QVG Capital. CSL reported revenue growth of 4% in its half-year results in February and a net profit after tax (NPAT) of $1.76 billion.
CSL share price snapshot
The CSL share price has shed nearly 10% year to date, while it is down just over 2% in the past year.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained nearly 9% in the past 12 months.
CSL has a market capitalisation of more than $126 billion based on its current share price.
The post Why the CSL (ASX:CSL) share price will ‘find its mojo again’: expert appeared first on The Motley Fool Australia.
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More reading
- 3 ASX shares I own myself that will rise again soon: expert
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- Do CSL shares deserve a spot in the ASX ‘hall of fame’?
- Top brokers name 3 ASX shares to buy today
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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