CSL share price tipped to rise 23% by Citi

Broker looking at the share price on her laptop with green and red points in the background.

Broker looking at the share price on her laptop with green and red points in the background.

The CSL Limited (ASX: CSL) share price is ending the week in the red.

At the time of writing, the biotherapeutics giant’s shares are down almost 2% to $276.30.

This means the CSL share price is now down approximately 14% from its 52-week high.

Is the CSL share price weakness a buying opportunity?

According to a note out of Citi, its analysts believe the company’s shares are trading at a very attractive level.

The note reveals that Citi has retained its buy rating and lofty $340.00 price target on its shares.

Based on the current CSL share price, this implies potential upside of 23% for investors over the next 12 months.

The broker is also expecting a dividend yield of approximately 1.5% in FY 2023, lifting the total potential return closer to 25%.

What did the broker say?

Citi notes that the United States District Court has overturned a decision to ban Mexicans from crossing the border to donate plasma.

Citi sees this as a positive for the company and expects it to be modestly supportive of plasma collections due to CSL operating 13 centres close to the border. It commented:

Reversal of ban on plasma donations by Mexican nationals: a tailwind for US plasma collection CSL announced that the United States District Court has issued a preliminary injunction preventing the United States Customs and Border Protection (CBP) from continuing to enforce its ban on plasma donations by Mexican nationals.

The ban was in place since June 2021. This is a positive for the industry which has just recently seen plasma collections reach pre-pandemic levels. For CSL the impact will positive, but relatively small: CSL has ~13 centres near the border, or ~4% of its US total of 312. CSL is hosting its AGM on 12 Oct and its CSL Vifor Investor Day on 17 Oct where we expect it to provide revised guidance including Vifor. We rate CSL Buy, $340 TP.

The post CSL share price tipped to rise 23% by Citi appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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