The CSL Limited (ASX: CSL) share price has been underperforming in 2021.
Since the start of the year, the biotherapeutics giant’s shares are up approximately 7%.
This falls short of the S&P/ASX 200 Index (ASX: XJO) with its gain of 10.5%.
Is the CSL share price good value at the current level?
While the CSL share price underperformance is disappointing for shareholders, it could be a buying opportunity for non-shareholders.
Two brokers that are bullish on the company right now are Morgans and Macquarie Group Ltd (ASX: MQG).
Morgans currently has an add rating and $324.40 price target on its shares, whereas Macquarie has an outperform rating and $338.00 price target.
Based on the current CSL share price of $304.68, this implies potential upside of 6.5% to 11% over the next 12 months.
Why are the brokers positive on CSL?
Both brokers appear confident in the company’s long term growth profile. Macquarie notes that immunoglobulins demand remains strong and is expected to grow in the future. This should be supported by a more efficient plasma collection platform that CSL is working on at present.
Morgans appears to agree with this view. And while it acknowledges that the near term will be challenging because of plasma collection headwinds, it feels CSL is best-positioned to meet the aforementioned growing demand for immunoglobulins.
The broker commented: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs.”
All in all, this could make the CSL share price one to consider for investors that are looking for options in the healthcare sector right now.
The post Is the CSL (ASX:CSL) share price great value? Here’s what analysts think: appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSL right now?
Before you consider CSL, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- 3 strong blue chip ASX 200 shares to buy
- 2 ASX shares that tick all the right boxes for the long term: expert
- Rationale behind CSL (ASX:CSL) acquisition play not ‘immediately apparent’: Macquarie
- CSL (ASX:CSL) share price holds the line in November
- What’s going on with the CSL (ASX:CSL) share price on Friday?
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. owns and has recommended CSL Ltd. 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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3pHbURo
Leave a Reply