The share price of S&P/ASX 200 Index (ASX: XJO) healthcare giant CSL Limited (ASX: CSL) outperformed last month. Could it be gearing up to do the same this month?
While experts are notably bullish on the biotech stock, the company is reportedly facing growing risks overseas.
The CSL share price is trading at $287.45 right now. That’s 2.9% lower than it started 2022.
Meanwhile, the ASX 200 has dumped 14.9% so far this year while the S&P/ASX 200 Health Care Index (ASX: XHJ) has slipped 11.9%.
So, what might October hold for the ASX 200 healthcare favourite? Let’s take a look.
What might October bring for CSL shares?
Plenty of brokers are bullish about the future of the CSL share price.
Indeed, Citi has tipped it to surge to a record-breaking $340 – representing a potential 18% upside, as my Fool colleague James reports.
Meanwhile, brokers Macquarie, Morgans, and Morgan Stanley have slapped the stock with respective $329.50, $321.20, and $323 price targets, with various factors driving their outlooks.
Now, Alphinity portfolio manager Stuart Welch has joined the chorus tipping big things for the ASX 200 favourite. The fundie said the company’s valuation is “starting to look more attractive relative to its history”. He told Livewire:
We’re certainly seeing a lot more donors coming into [plasma] donation centres and those volumes are ramping back up. Whilst that takes some time to come through the [profit and loss], because there is a seven-to-nine-month manufacturing cycle that you got to get through first, we are confident that that recovery is coming. And putting that together, volume recovery together with a bit of price, you can see a return to margin recovery as well.
But not everything appears bright for the company. Europe’s growing energy crisis might impact many of its factories and research and development centres, The Australian reports. Though, CSL is said to be preparing for all eventualities.
The company’s chief financial officer Joy Linton was quoted by the publication as saying:
CSL has been monitoring the European energy situation closely, particularly as it relates to energy supply for our Marburg site in Germany.
The EU Gas Emergency framework prioritises companies providing critical, lifesaving therapies so we have some assurance through that. We also have robust contingency plans that can be put in place at relatively short notice.
Additionally, not all brokers are bullish on the stock. Goldman Sachs, for instance, has a neutral rating and a $291 price target on CSL shares.
The post Are CSL shares ‘starting to look more attractive’ in October? appeared first on The Motley Fool Australia.
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More reading
- Did CSL shares manage to generate healthy returns in September?
- CSL share price jumps despite JP Morgan’s latest caution
- When might the CSL share price top $300 again?
- Move over gold: Could ASX 200 healthcare shares be the new ‘safe-haven’ investments?
- Experts name 2 star blue chip ASX 200 shares to buy now
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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. and Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. 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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