The CSL Limited (ASX: CSL) share price is on course to end the week in the red.
In afternoon trade, the biotherapeutics giant’s shares are down 0.5% to $255.80.
This means the CSL share price is down over 13% in 2022 and 20% from its 52-week high of $319.78.
Why is the CSL share price falling today?
The weakness in the CSL share price on Friday appears to have been driven by a mixed result from one of its rivals, Takeda.
While the Japanese biotech giant reported strong immunoglobulin sales for the third quarter, it also revealed a sizeable reduction in plasma collections.
Concerns about plasma collection headwinds and the impact they could have on CSL’s margins have been weighing on sentiment during the pandemic. Based on Takeda’s update, it appears as though these headwinds have yet to ease.
Can its shares get back above $300 in 2022?
Until the aforementioned plasma collection headwinds ease, the CSL share price is likely to remain out of favour with investors.
Though, when these headwinds do finally ease and investor sentiment improves, a number of brokers believe its shares could be trading at materially higher levels and well beyond the $300 mark.
For example, both Citi and Morgans have the equivalent of buy ratings on its shares with price targets of $340.00 and $334.70, respectively. These price targets imply potential upside of 30%+ over the next 12 months.
In respect to Morgans, it feels FY 2022 is a transitional year but remains very positive on the long term.
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.”
The post Can the CSL (ASX:CSL) share price crack the $300 mark in 2022? 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 over 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 January 13th 2022
More reading
- Do this now to be filthy rich later: expert
- Analysts name 2 ASX 200 blue chip shares with 30% upside
- Top broker says latest CSL (ASX:CSL) acquisition will boost more than its bottom line. Here’s why
- 3 ‘champion stocks’ for ASX investors in 2022
- 3 blue chip ASX 200 shares to buy after the selloff
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 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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/d6sE4gt
Leave a Reply