CSL Limited (ASX: CSL) shares have been having a tough time in recent months.
Due to concerns over a slower margin recovery and then the emergence of the wonder drug Ozempic as a potential treatment for kidney disease, the biotherapeutics company's shares have fallen heavily.
So much so, that they recently touched a 52-week low of $230.81. This is almost 27% lower than the 52-week high it reached earlier this year.
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Insider buys CSL shares
It appears that an insider at CSL believes the company's shares have fallen to an attractive level.
According to a change of director's interest notice, independent non-executive director Dr Megan Clark AC topped up her holding in the company last week.
The notice reveals that Dr Clark picked up 210 CSL shares through an on-market trade on 20 October. She paid an average of approximately $237.81 per share, which equates to a total consideration of just under $50,000.
This boosts the independent non-executive director's direct holding to a total of 3,683 CSL shares. Dr Clark also indirectly owns 1,281 shares and has 290 share rights.
Should you do the same?
Analysts at Citi would be supportive of this purchase. Last week, the broker reiterated its buy rating with a $325.00 price target. This implies a potential upside of 37% for investors from current levels.
To put that into context, if the CSL share price were to rise to that level, the 210 units that Dr Clark picked up would have a market value of $68,250. This compares very favourably to the purchase price of ~$50,000.
Commenting on CSL's outlook and valuation, Citi said:
CSL remains confident in its ability to generate double-digit EPS growth over the medium-term, in-line with consensus/Citi forecasts of 14%/15% EPS CAGR over FY23-28e. […] CSL is trading on a PE FY25 of ~23x, a 5x discount to historical average.
