1 magnificent ASX stock down 10% to buy and hold forever

It has been an uncharacteristically underwhelming 12 months for CSL Ltd (ASX: CSL) shares.

Over the period, the ASX biotech stock has lost around 10% of its value.

As a comparison, over the past 15 years, this magnificent company’s shares have generated an average total return of 16.6% per annum.

This would have turned a $10,000 investment in the ASX stock back in 2009 into $100,000 today.

And while recent weakness is very off-brand for CSL and disappointing for shareholders, it could prove to be a buying opportunity for non-shareholders.

That’s the view of a large number of analysts, which currently have buy ratings on the company’s shares with price targets implying that market-beating returns are possible.

What are analysts saying about this ASX stock?

One broker that is particularly bullish on CSL is Morgans. In fact, the broker has named the company on its best ideas list again this month. It has an add rating and $315.40 price target on them, which implies potential upside of almost 13% over the next 12 months.

It highlights the company’s shares are undervalued compared to historical averages. This is despite the ASX stock having a very bright outlook. It said:

While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.

Analysts at Macquarie are even more bullish on the ASX stock. They currently have an outperform rating and $330.00 price target on CSL’s shares. This suggests that upside of 18% is possible between now and this time next year.

The broker is very positive on the company’s outlook. So much so, it sees scope for CSL’s shares to rise to $500 within three years. This is almost double its current share price, which means that some very big annual returns would be coming for investors over the next three years if Macquarie is on the money with its recommendation.

In addition, the team at UBS remains very positive. Last month it retained its buy rating and $330.00 price target on CSL’s shares. UBS believes the ASX stock can achieve high-teens earnings growth over the next few years.

All in all, the broker community appears to believe this magnificent ASX stock could be worth buying and holding at current levels.

The post 1 magnificent ASX stock down 10% to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• 4 founder-led ASX 300 shares that have helped this fund outperform
• 3 easy ways to reduce your ASX share portfolio’s volatility right now
• Buy CSL shares for growing dividends and ‘compelling long-term tailwinds’
• Morgans names more of the best ASX 200 shares to buy in May
• Aussie investors: 3 ASX shares to buy and hold forever

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.