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

Professional investors have not lost their affection for this stock that made plenty of people rich before the COVID-19 pandemic.

| More on:
A businessman hugs his computer and smiles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Investing Strategies

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Growth Shares

3 ASX 200 growth shares to buy for 20% to 30% returns

Analysts are tipping these shares to rise strongly from current levels.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Cheap Shares

These ASX 200 shares keep smashing new highs. Too late to buy?

Finding cheap shares is hard, but not impossible, right now.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Cheap Shares

I think these 2 cheap ASX shares are buys for value investors

Here’s why these ASX picks could appeal due to how cheap they are.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Small Cap Shares

2 small cap ASX stocks with big price targets

Brokers have put big price targets on these small caps this month.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

These ASX dividend stocks offer 4% to 8% yields

Analysts are tipping these stocks as buys for income investors.

Read more »

A happy woman at her laptop punches the air, indicating a rising share price
Dividend Investing

Buy BHP and these ASX dividend shares now

Analysts think that income investors should be buying these shares.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

Why now presents an 'attractive opportunity' to buy this quality ASX 200 dividend stock

The ASX 200 dividend stock could be trading at a long-term bargain.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Overinvested in ANZ shares? Here are two alternative ASX passive income options

These investments could add pleasing dividend diversification.

Read more »