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 boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Growth Shares

2 ASX 300 growth shares with 'strong momentum' this fund manager says are buys

These two stocks have plenty of growth potential, according to experts.

Read more »

Two workers at an oil rig discuss operations.
Dividend Investing

This high-yielding ASX 200 dividend stock remains a top choice for passive income

I think this ASX 200 dividend gem will remain a top passive income stock for years to come.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

Buy these ASX dividend shares for 6%+ yields

Analysts expect these stocks to provide income investors with big yields in the coming years.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

2 high-yield Australian dividend shares for reliable passive income

When you're looking to generate passive income from the share market, you want reliability. No income investor wants to see…

Read more »

Rocket going up above mountains, symbolising a record high.
Growth Shares

2 high-growth ASX shares to buy now

Analysts at Bell Potter think these shares would be great picks for growth investors.

Read more »

Happy female friends taking self portrait through mobile phone at pool's edge, symbolising passive income.
Dividend Investing

Looking for passive income? Try this ASX 200 blue chip

This stock's 4.66% fully franked yield is hard to ignore.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Bank Shares

Everything you need to know about the NAB dividend

NAB will soon be sending its next payout to investors.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

2 high-yield ASX dividend shares for Australian retirees

Analysts are tipping big yields and big returns from these income stocks.

Read more »