The Telstra Corporation Ltd (ASX: TLS) share price has had a rough start to 2022.

It’s slumped 4% since the start of this year amid anticipation of its T25 strategy and news its long-term CEO, Andy Penn, will step down in September.

Right now, the company’s stock is trading at $4.04 apiece.

For context, the S&P/ASX 200 Index (ASX: XJO) has also had a rocky start to the year. Today’s 1.6% dip has put it back into the year-to-date red. It’s now 1.5% lower than it was at the start of 2022.

However, the Telstra share price is outperforming its home sector. The S&P/ASX 200 Communication Index (ASX: XTJ) has slumped 9% this year.

But the future might be brighter for the telecommunications giant. Here’s what one top broker is expecting from the Telstra share price and the company’s dividends.

Could owners of Telstra shares be in for a good year?

Telstra, its share price, and its dividends have been plagued by NBN dramas over the last few years, but that seems to be behind the company now.

On releasing its half-year earnings, the company noted this financial year would bring the last of the major negative effects of its transition to the network.

As a result, momentum in its underlying performance is expected to show through in the near future.

At the same time, Telstra will turn to its T25 strategy. And one of the most notable aspects of the plan – for its investors at least –­ regards the company’s dividends.

Over the next three years, the ASX 200 telco giant will seek to maximise fully franked dividends. To do so, it will cut costs and add shareholder value.

So, what sort of dividends and returns are brokers expecting the company to provide in the coming years?

As The Motley Fool Australia’s James Mickelboro recently reported, Morgans is bullish on Telstra’s shares and dividends.

It’s slapped the Telstra share price with a $4.56 price target and an ‘add’ rating.

The top broker is also expecting the telco to pay out 16 cents of dividends per share for this financial year and next.

That’s on the money so far. Telstra declared an 8 cent per share fully franked interim dividend in February.

If both Morgans’ predictions come true, that would leave Telstra with a dividend yield of 3.5%.

The post Can Telstra shares deliver an attractive dividend yield AND 13% upside in 2022? appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 top ASX 200 dividend shares to buy
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• After going backwards in 2022, could the Telstra share price be set to dial up some gains this quarter?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Do experts think the Telstra share price is good value right now?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX 300 shares are trading down in afternoon trade on Friday with the S&P/ASX 300 Index (ASX: XKO) slipping 160 basis points to 7,470.

Despite the challenges on Australian markets today, three shares have topped their record highs today.

Ramsay Health Care Ltd (ASX: RHC)

Shares in Ramsay are climbing around 1% higher today, extending gains for the past week to 30%. Investors have been piling into the company after it confirmed a $20 billion takeover bid led by private equity giant KKR.

KKR will offer $88 per share in cash to purchase 100% of Ramsay. But there’s more to the deal, according to TMF at the time:

Ramsay will also be allowed to pay shareholders a fully franked special dividend, which would reduce the offer price accordingly. This is so the healthcare giant can distribute all available franking credits to shareholders. Prior to its most recent dividend, Ramsay’s franking account balance was a sizeable $823 million.

Ramsay is largely owned by retail investors, which could have implications on shareholder voting outcomes, a point that Mitch Lawller of TMF recently alluded to.

Since the news broke, the Ramsay share price has spiked more than 30% to nudge past its all-time high, last reached in 2016. So for long-term holders, it’s been more than 5 years to break even from then.

Shopping Centres Australasia Property Group (ASX: SCP)

Shares in SCP have been working their way higher ever since the March selloff in 2020 that followed the pandemic.

In that time, the SCP share price has thrust off a bottom of $2.16 per share and now rests at $3.08 at the time of writing.

Right before the onset of COVID-19, SCP’s share price had set off in a vertical uptrend that saw it run from $2.72 to $3.13 in less than a month.

Prompting gains was the management revising guidance upwards for funds from operations (FFO) per share in the company’s recent half-year earnings.

It forecasts FFO per share of around 17.5 cents, an 18% gain year on year. It also intends to launch a new fund with $750 million in initial capital.

Since releasing its projections in February, the company has seen its share price extend a leg higher and it now trades at all-time highs as well.

John Lyng Group Ltd (ASX: JLG)

Another ASX 300 share marking new all-time highs today is Australia-based building services company, John Lyng Group.

The company’s share price has been on a steady glide upwards over the last 12 months, setting a series of new highs and higher lows in the process.

At the time of writing, it trades at $9.23 apiece, after pushing to an intraday high of $9.34 per share and levelling off soon after.

John Lyng advised that it will lead the Government’s $124 million flood recovery plan in Eastern Australia, adding to its already strong FY22 half-year results, according to previous TMF analysis.

That’s got fund manager and listed investment company (LIC) WAM Research constructive on the stock, it said in recent disclosures.

The John Lyng share price has soared 134% in the last 12 months even after a difficult period this year to date.

The post Despite today’s sell-off, these 3 ASX 300 shares are topping all-time highs appeared first on The Motley Fool Australia.

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• Who will have the final say on whether Ramsay Health Care leaves the ASX?
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• Here are the top 10 ASX shares today
• This struggling ASX BNPL share is delisting. What does this mean?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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How much were Fortescue Metals Group Limited (ASX: FMG) shares when they were first listed on the ASX? Good question.

Fortescue is now an entrenched iron ore mining giant and ASX 200 blue-chip share. So it’s easy to forget it hasn’t actually been on the ASX for that long, especially compared to some of its peers like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). 

So, Fortescue wasn’t always Fortescue. Before current chair Andrew ‘Twiggy’ Forrest took hold of the company, it was known as Allied Mining and Processing.

Allied Mining and Processing was a fledgling gold miner at the time, but hadn’t had too much success before Twiggy got involved. In fact, a report from The West Australian described Allied Mining and Processing as a “penny dreadful”.

Forrest took charge of the company back in July 2003 and engineered its name change at the same time. He also turned its focus to the red, iron-filled dirt of the Pilbara region of Western Australia.

Fortescue follows the red brick road to fame and fortune

At the time of the ‘new’ Allied Mining and Processing’s first appearance on the ASX under the Fortescue Metals name, it was priced at … just 2 cents a share. A few months before that, this was a one-cent company.

Of course, Fortescue’s current share price of $21.26 (at the time of writing), as well as its all-time high of $26.58, make that initial share price look utterly ridiculous. The rise from 2 cents to today’s price represents a gain of 106,000%.

No wonder Twiggy is now the country’s second-wealthiest person, according to the Australian Financial Review (AFR)’s Rich List. On its most recent estimate, Forrest is now worth $27.25 billion, only behind Gina Rinehart on $31.06 billion.

Fortescue shares have given investors massive returns in recent years. The company is up 7% in 2022 so far, and up 300% over the past five years. That’s on top of the monstrous dividends it has also been paying out in recent years. On the current Fortescue share price, this ASX 200 miner has a trailing dividend yield of 14.03%.

The post How much were Fortescue shares when they first listed on the ASX? appeared first on The Motley Fool Australia.

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• Dividend beasts: 5 ASX 200 shares with the highest dividend yield right now
• The future looks bright: Here’s why this investment firm is doubling down on ASX shares in April
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• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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The Webjet Limited (ASX: WEB) share price has rebounded strongly over the past couple of weeks.

After reaching a low of $5.24 on 12 April, the online travel agent’s shares are on the mend.

At the time of writing, Webjet shares are taking a breather, down 0.82% to $6.07. This means despite the slight retracement; they are up 12.6% over the last two weeks.

What’s driving Webjet shares higher?

As more countries begin to relax their COVID-19 restrictions, ASX investors have become increasingly confident in the sector. Particularly, given that passengers are now able to travel quarantine-free to most destinations.

Subsequently, this has driven the Webjet share price higher due to pent-up demand across the travel market.

And with the world moving on and now accepting to live with the virus, normality is just around the corner.

Webjet has been busy taking advantage of its opportunities while the market has been in a downturn.

In its FY22 first-half results, the company noted that competition has decreased due to financial pressures impacting the travel industry.

As such, management highlighted that the WebBeds business is poised to deliver significant revenue growth.

In particular, Webjet has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company’s second biggest market, behind the Asia Pacific region in terms of booking numbers.

Notably, with the Omicron variant decreasing in key markets, this is likely to lead to a bumper performance for Webjet.

Australia, the United Kingdom, Europe and the United States are now almost free of travel restrictions.

Webjet also boosted and optimised its API (application programming interface) connections for key business to consumer (B2C) clients. It stated that the financial strength of the company makes it a trusted partner for hotel suppliers.

All eyes will be on Webjet FY22 results which is scheduled to be reported towards the backend of next month.

Is this a buying opportunity?

The team at Citi upgraded its outlook to buy from neutral, lifting its price target by 0.6% to $6.50 per share. This implies a potential upside of 7% from where Webjet shares trade today.

On the other hand, Macquarie had a bearish tone, cutting its rating on the company’s shares by 4.9% to $5.80. For context, this represents a downside of around 4.5%.

Webjet share price summary

It’s been a rollercoaster 12 months for Webjet investors, with its shares up 13% over the period.

When glancing at the year to date, its shares are up around 17%.

Based on valuation grounds, Webjet has a market capitalisation of around $2.3 billion.

The post The Webjet share price has leapt 12% in 2 weeks. Could this be the start of something?  appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 travel shares taking off on Wednesday?
• Why are Webjet shares still among the most shorted on the ASX
• Here are the 5 best performing ASX travel shares of 2022 so far
• The Webjet share price has dropped 9% in six months. Is now the time to pounce?
• These are the 10 most shorted ASX shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is sliding today and is now 1.96% in the red at $4.51.

Investors appear to have been unimpressed by Telix’s quarterly activities and cash flow report today, with trading volume less than 25% of the four-week average.

Telix share price slips amid product progress

The Telix share price is falling after the company released its activities report for the quarter ended March 31. In terms of cash flow, Telix reported net loss in cash from operations of $33.6 million, with total operating outflows of $36.7 million.

From this amount, it recorded cash receipts of $1.9 million from sales to customers and spent $20 million on research & development (R&D).

Telix launched its prostate cancer imaging product, Illuccix, in the US last quarter. This is “a major focus area”, according to the company. Telix is predicting “a high level of anticipation and customer demand” for the product.

Specifically, Telix’s cash flow statements reveal it has a cash runway – how long its cash will last at the current rate of expenditure – of 5.1 quarters.

But, Telix says, “this number does not include any anticipated revenue from commercial sales of Illuccix, which was successfully launched in the United States on 4 April 2022.”

Judging from this timeline, it appears Telix will start booking revenue from US Illucix sales at some point this year.

The release also states that the first commercial inventory of the product “is available through 117 US pharmacies in the Cardinal Health, PharmaLogic, and United Pharmacy Partners (UPPI) networks”.

Telix also completed enrolment of 252 patients into a Phase 3 study investigating its TLX–250CDx compound for the imaging of clear cell renal cell carcinoma with positron emission topography (PET).

Aside from that, Telix also completed a $175 million institutional placement made of new ordinary shares priced at $7.70 apiece. It will use the funds to finalise late-stage clinical trials and work towards expanding its pipeline.

It also secured 12.1 million Euros (A$18.2 million) in financing for the development of a radiopharmaceutical production facility in Belgium. The facility will be used for R&D in both diagnostic and therapeutic applications, Telix says.

Management commentary

Speaking on today’s results, Telix managing director and CEO Dr Christian Behrenbruch said:

This has been a pivotal quarter for Telix, as we delivered on several major objectives including the Company transformational event of launching our first commercial product and completion of target enrolment for a Phase III clinical trial.

We are strongly encouraged by the level of anticipation and early demand for Illuccix, both in the independent imaging centre and hospital-based segments of the US market, driven by clear inclusion in clinical practice guidelines and, more recently, indicated as a patient selection tool for next-generation prostate cancer therapy. Telix is uniquely positioned to deliver this product on-demand, coast-to-coast across the US

In the last 12 months, the Telix share price has gained 14%. However, it has tanked by more than 41% this year to date.

The post Telix share price slips on quarterly update appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) just reported a record quarter, and investors are jumping into the stock because of it. Many investors wanting more exposure in the electric vehicle (EV) sector may be wondering if today’s pop means it’s too late to buy Tesla. 

After all, the competition is increasing from both EV start-ups as well as legacy automakers making the transition to electric. But Tesla has been showing that it can navigate headwinds including increasing raw material costs and production delays. For investors with the right mindset, it could still be a good time to buy Tesla shares. 

Valuation has always been the knock on Tesla from those who shunned the stock. After today’s jump, Tesla is being valued with a market cap of about $1.1 trillion. With a net income of about $5.5 billion in 2021, that gives it a trailing price-to-earnings (P/E) ratio of 200. 

But revenue in the first quarter of 2022 soared 81% year over year. And net income in the quarter was $3.3 billion. That elevated P/E will drop quickly if it continues to have results like it just produced. The company itself says it expects vehicle deliveries to be able to grow at a 50% rate annually for several years to come. 

Based on the most recent quarter, that might be a conservative prediction. The company has been able to navigate supply chain challenges successfully so far. Its Shanghai plant was forced to suspend production starting in late March, so those impacts will be known more when the second quarter is reported. 

But its operating execution and brand are enabling it to overcome raw material price inflation, and still report strong profitability and margins. If Tesla is able to ramp up its recently opened facilities in Germany and Texas successfully, and continue to execute as it has, there’s good reason to think that even today’s stock price could provide market-beating returns in the future.

Investors who buy it would need to have patience and expect volatility, however. That might mean it’s not for everyone, but today’s stock jump isn’t a reason on its own to avoid the stock. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is it too late to buy Tesla shares? appeared first on The Motley Fool Australia.

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• Is Elon Musk really going to buy Twitter?
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• Can the Tesla share price really quadruple from here?
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To narrow things down, listed below are two ASX 200 shares that are highly rated by analysts at Goldman Sachs. Here’s what you need to know about them:

Elders Ltd (ASX: ELD)

The first ASX 200 share to look at is Elders. It is one of Australia’s largest agribusiness companies and has an increasingly positive outlook. This is thanks to the success of its transformation plan and acquisitions.

In addition, Goldman Sachs notes that Elders is well-placed to benefit from the rationalisation of the rural services industry, margin expansion opportunities, and the benefits of its large scale systems modernisation project.

Goldman currently has a conviction buy rating and $17.65 price target on its shares.

The broker said: “Looking forward, we view strong operating conditions as a catalyst to help accelerate the transformation of the business, capturing momentum to improve earnings sustainability.”

REA Group Limited (ASX: REA)

Another ASX 200 share that Goldman Sachs rates highly is REA Group. It is the dominant player in real estate listings in the Australian market.

REA looks well-placed for growth in the coming years thanks to a combination of acquisitions, price increases, its international operations, and its strong market position in Australia.

In respect to the latter, a record 13.2 million people visited its local site in October. This is the equivalent of 65% of Australia’s adult population. Furthermore, on average, there were 3.3x more visits than the nearest competitor each month during the first half of FY 2022.

Goldman Sachs has a buy rating and $167.00 price target on its shares.

The broker expects its solid form to continue in FY 2023. It said: “We forecast FY23 EBITDA growth of +7%, assuming (1) -5% listings headwinds offset by +6% price and +3% depth/new products (such as Audience Max/Connect).”

The post 2 ASX 200 shares Goldman Sachs rates as buy appeared first on The Motley Fool Australia.

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• Analysts name 2 ASX dividend shares to buy next week
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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Citi, its analysts have upgraded this mining giant’s shares to a buy rating with an improved price target of $56.00. While the broker concedes that BHP and its peers have underwhelmed during the March quarter, it thinks investors should overlook this due to the significant cash flow the company is generating thanks to sky high commodity prices. The BHP share price is trading at $48.60.

Endeavour Group Ltd (ASX: EDV)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and lifted their price target on this alcohol retailer’s shares to $8.30. While its third quarter trading update was softer than the broker expected, Goldman remains positive. This is due partly to the company’s less price-sensitive portfolio and high consumer loyalty. The Endeavour share price is fetching $7.70.

Megaport Ltd (ASX: MP1)

Another note out of Citi reveals that its analysts have retained their buy rating but cut their price target on this network as a service provider’s shares to $16.60. While Citi was disappointed with Megaport’s quarterly update and has downgraded its estimates accordingly, it isn’t enough to dampen its bullish view. Citi continues to believe Megaport will be a big winner from the trend towards multi-cloud connectivity. The Megaport share price is trading at $8.97.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Bellevue Gold Ltd (ASX: BGL) are hitching up today and now trade over 2% higher at $1.01 apiece.

Investors are bidding up the Bellevue Gold share price today following the release of its quarterly activities and cash flow statements’.

Bellevue Gold share price spikes on updates

It’s a tale of two stories with Bellevue’s activities and cashflow updates today; one of numbers and one of words.

On the activities side, Bellevue said it achieved “[o]utstanding progress on both the geological and project development fronts during the quarter.”

This is underpinned by the inferred resource drilling program at its Bellevue Gold project that is set to deliver a a resource estimate sometime in the coming three months, it says.

Bellevue also awarded a mining contract to the underground services division of Develop Global Ltd (ASX: DVP) for development and production activities at its flagship project

Contract terms are linked with forecasts set out in Bellevue’s stage 2 feasibility study announced back in September last year.

Finally, the company also completed installation of a 330-person mine camp at its project site, the first of several significant surface infrastructure works yet to be completed. Completion is expected in Q1 FY23, it says.

On the numbers side, Bellevue hasn’t realised any cash receipts from customers yet, and hence recorded a net loss of $2.8 million in cash from operations.

It also printed a net loss of $19.8 million in cash from investing activities, slightly less than last quarter. However, the bulk of this was from a $14 million exploration and evaluation expense that was also capitalised on the balance sheet.

Bellevue also realised a $21 million net inflow from proceeds drawn in from the exercise of options this quarter, adding to a $36 million equity raise last quarter.

At the end of the period, Bellevue was “well capitalised” with $150.9 million in cash and equivalents after running through the last three months.

Management commentary

Speaking on the announcement, Bellevue Managing Director, Steve Parsons said:

Everything is proceeding to plan. The project is fully funded, the optimisation studies are delivering favourable cost and productivity results and the successful infill drilling has set us up for a Reserve update this quarter.

The award of the mining contract to Develop means we have a highly experienced team of WA underground mining specialists working with our first-rate management to bring the project into production and set it up for a strong future.

We are now putting these work streams together to complete a comprehensive project update ahead of the next phase of mine development and awarding more key contracts.

In the last 12 months the Bellevue Gold share price is flat after shooting 20% higher since January 2022.

The post ‘Pivotal quarter’: Here’s why the Bellevue Gold share price is outperforming today appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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One of the quintessential blue chips of the ASX, CSL Limited (ASX: CSL) has had a rough time of it during the pandemic.

Lockdowns all over the world were a big problem for the biotherapies company, as it couldn’t derive its usual volume of plasma collections — particularly in the United States — to make as much product as usual.

CSL is the largest collector of human blood plasma in the world. It relies on hundreds of thousands of donors to produce its critical medicines, including vaccines against the flu and polio.

Just before the pandemic hit the ASX in March 2020, the CSL share price was as high as $336.40. That was in mid-February 2020. Then it came crashing down, along with pretty much every other ASX share, to an initial low of $270.88. Then came the struggle through the first two years of COVID-19, during which time CSL shares have been effectively rangebound between the mid-$200s and about $315.

Today, the CSL share price is $270.66, up 1.38% in today’s session so far. Year-to-date, it’s down 8.5%.

So, when is the time right to pounce on CSL shares?

Well, one broker — Citi — reckons it’s a buy right now. They have a $335 price target for the next 12 months.

As my Fool colleague James reported last week, “Citi highlights that the company’s shares are underperforming the market this year but appears optimistic this will change as plasma collections begin to recover and the acquisition of Vifor Pharma closes.”

Morgan Stanley looks further ahead

Analysts at Morgan Stanley reckon the CSL share price is heading in the direction of $400 by 2025.

According to reporting in The Australian, the broker says this will be driven by three factors. And all of them relate to CSL’s US$12.3 billion (A$17.2 billion) acquisition of Swiss biotech giant Vifor Pharma.

Morgan Stanley analysts estimate the deal is 8% earnings per share-accretive to CSL in FY23 “if the acquisition indeed proceeds”. (According to a CSL statement yesterday, everything is on track for the deal to be completed by June).

The note reportedly said, “Given CSL’s long track record of fundamentally outperforming peers, we believe the Vifor outlook could be very different in CSL management’s hands.”

The analysts expect “material EPS upside” due to three key factors.

1. Higher revenues through CSL sales channels for Vifor drugs Veltassa, Korsuva/Kapruvia, and later Vadadusta
2. A revenue boost from Vifor’s Injectafer through greater adoption of Patient Blood Management
3. Developmental transplant franchise benefits from Vifor’s Fresenius Medical Care and Fresenius Kabi relationships

The note said CSL’s plasma collections have returned to pre-pandemic levels and its vaccine products are performing strongly.

What else is affecting the CSL share price?

Yesterday, CSL revealed it has priced US$4 billion of bonds in the US market, which will help pay for Vifor.

CSL’s Chief Financial Officer, Joy Linton said:

The strong support shown by investors towards our inaugural US dollar bond issue reflects positively on our track record of disciplined financial management, as well as confidence in our strategy to invest in our leading therapeutic capabilities and generate sustainable growth.

The post Why Morgan Stanley says the CSL share price can hit $400 by 2025 appeared first on The Motley Fool Australia.

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• Why has the CSL share price struggled in the past month?
• Should ASX investors buy the dip in the CSL share price?
• 2 blue chip ASX 200 shares analysts rate as buys this month

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen owns CSL Ltd. 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.

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