CSL Limited (ASX: CSL) shares having a positive start to the week.
In afternoon trade, the biotherapeutics companyâs shares are up 1% to $297.29.
This leaves CSL’s shares on the cusp of breaking through the $300 mark once again.
Where are CSL’s shares heading?
The good news for investors is that one leading broker believes that CSL’s shares can rise beyond the $300 mark and keep on climbing.
According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on the companyâs shares.
Based on where its shares trade today, this implies potential upside of over 14% for investors over the next 12 months.
What did the broker say?
Citi notes that the company recently held its research and development (R&D) day.
Its analysts highlight that CSL plans to continue spending over US$1 billion on its R&D activities each year for the foreseeable future. And with exciting potential therapies such as CSL 112 in its pipeline, itâs hard to argue against this level of investment.
Citi commented:
CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3. Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) â the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.
The post To $300 and beyond! Why this top broker says CSL shares are a buy right now appeared first on The Motley Fool Australia.
FREE Guide for New Investors
Despite what some people may say – we believe investing in shares doesnât have to be overwhelming or complicatedâ¦
For over a decade, weâve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion âexperts” seem to want to perpetuate – weâve created a brand-new âhow toâ guide.
Yes, Claim my FREE copy!
*Returns as of November 7 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Are these the very best ASX 200 shares to buy for 2023?
- How much dividend income will $20,000 worth of CSL shares buy right now?
- Considering CSL shares? Broker says this other ASX 200 healthcare share has 30% upside
- Experts name 2 ASX 50 shares to buy
- Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
Motley Fool contributor James Mickleboro has positions in CSL Ltd. 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.
from The Motley Fool Australia https://ift.tt/a5F9dji
Leave a Reply