Why analysts love this ASX share that lost investors 5.5% in FY22

It’s extremely rare to see the analyst community unanimously favour a particular stock.

Much like the retail investor population, each professional also has their own style, taste and strategy. So what looks attractive to one analyst may not fit the criteria for another.

But if there’s anything close to a unanimously loved ASX share right now, it’s CSL Limited (ASX: CSL).

According to CMC Markets, 12 out of 13 analysts currently rate the biotechnology stock as a buy. 

Ten of those 12 go as far as recommending it as a strong buy.

Fallen star could represent a bargain

Over the 2022 financial year, the CSL share price lost 5.5%. It’s still a long way from its pre-COVID high.

Perhaps this represents great value to the analysts, who have seen CSL make many people wealthy over the long term.

The share price closed Thursday at $287.

According to The Motley Fool’s James Mickelboro, the team at Citi reckons there’s massive upside, slapping on a price target of $330.

“US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated,” Citi’s notes read.

“With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand.”

Reporting season could surprise

The biggest influence on the CSL share price over the last financial year, aside from the ongoing COVID-19 pandemic, was the acquisition of European pharmaceutical company Vifor Pharma towards the end of last year.

At the time experts were divided over whether the deal was a positive one for CSL.

But now that the dust has settled, there doesn’t seem to be as much angst about the $17.2 billion takeover.

With August reporting season coming up, Switzer Financial Group director Paul Rickard this week noted that healthcare companies like CSL tend to have a track record of “surprising on the upside”.

“The lower Australian dollar is helping as well,” he told Switzer TV Investing.

The post Why analysts love this ASX share that lost investors 5.5% in FY22 appeared first on The Motley Fool Australia.

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More reading

• 4 ‘quality’ ASX shares to buy in scary times: expert
• Analysts name 2 ASX 200 blue chip shares to buy
• Here’s how ASX healthcare shares performed in FY22
• Beating the benchmark: Why this broker is betting on the CSL share price for outperformance
• Here’s what happened to the CSL share price in June

Motley Fool contributor Tony Yoo 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.

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