The CSL share price dips as the ASX 200 dives on Wednesday

CSL shares are falling wayside on Wednesday.

| More on:
Two young men jump off a cliff into the water.

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

Key points

  • CSL shares backtrack 1.75% to $289.95 during early afternoon trade
  • Investors are fleeing the market following the release of a disappointing consumer price index report for the month of August
  • This led the Dow Jones to tank 3.94% overnight, and the ASX is now following suit

The CSL Limited (ASX: CSL) share price is being dumped amid a broader market sell-off by investors.

At the time of writing, the biotherapeutics company's shares are down 1.75% to $289.95.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 2.38% today, marking its biggest drop since June 2022.

Here's why CSL shares are in reverse today

Wall Street recorded heavy losses overnight following the release of the consumer price index report for August.

The data showed that inflation rose by 0.1% on a monthly basis when the market was expecting a 0.1% decrease.

Consequently, investors digested the negative news sending the Dow Jones 3.94% lower on the day.

This is because fears are growing that the United States Federal Reserve could lift interest rates by a full percentage point.

Previously, economists were expecting at worst that the central bank would hike the rate by 75 percentage points.

However, the market is now readjusting itself to factor in a likely aggressive move by the Fed to cool inflation.

As such, investors have hit the sell button on the CSL share price due to the broader market slump.

The S&P/ASX 200 Health Care Index (ASX: XHJ), of which CSL is a part, is currently down by 1.57%.

What do the brokers think?

Despite the gloomy turn of events, CSL shares are known for their high growth and defensive qualities.

As such, a number of brokers believe the share price is currently undervalued and lifted their price targets following the company's full-year results.

As reported by ANZ Share Investing, Jefferies raised its price target by 0.8% to $320.50 per CSL share.

Furthermore, both Macquarie and Morgan Stanley improved their price target by 5.6% to $329.50, and 3.5% to $323 apiece.

Based on where CSL shares are now trading, this implies an upside of around 12%.

CSL share price snapshot

Since the start of 2022, the CSL share price has taken investors on a rollercoaster.

Its shares are flat when looking at the past nine months.

CSL is the third largest company on the ASX with a market capitalisation of roughly $142.3 billion.

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 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 Healthcare Shares

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »

A couple smile as they look at a pregnancy test.
Healthcare Shares

Why this sold-off ASX healthcare share could be an exciting dividend buy

This could be a healthy stock for dividends.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Healthcare Shares

Is CSL the best ASX 100 share to buy now?

Bell Potter has good things to say about this blue chip star.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23
Healthcare Shares

Down 10% in a month, are CSL shares feeling the sting of a potential disruption?

Brokers are still bullish.

Read more »

One girl leapfrogs over her friend's back.
Healthcare Shares

Doubled in a year! Does this booming ASX share have another 24% upside?

Let's take a look.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
Healthcare Shares

Up 427% this year, why today is a big day for Mesoblast shares

Why is everyone talking about Mesoblast shares on Friday?

Read more »