'My number one idea is accumulating the ultra-high quality CSL' shares

Bell Potter says enough is enough, it's time to buy this giant's shares.

| More on:
Shot of a young scientist using a digital tablet while working in a lab.

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

Recent months have not been kind to CSL Limited (ASX: CSL) shares.

The biotherapeutics giant's shares have fallen heavily since June and one leading broker believes that they could have finally bottomed.

In fact, Charlie Aitken from Bell Potter thinks "the falling knife is sticking in the valuation floor and it's time to pick it up."

Why now is the time to buy CSL shares

According to a note out of the broker, Aitken highlights that CSL shares are trading on their "lowest relative PE premium to the market since 2017."

In light of this, the analyst feels it is "time to start nibbling in CSL which remains Australia's highest quality global industrial business." Especially with its chair, Dr Brian McNamee, recently reiterating that its intention is to be and remain a growth company for a long time to come.

It is because of this, that Aitken has named the company as his top pick for the month. He said:

My number one idea is accumulating the ultra-high quality CSL. […] McNamee's comments, combined with the reiteration of guidance last week, and arguably peak hysteria on weight loss drugs and some questioning articles in the financial press about CSL's future, all combine with the lowest relative valuation in 6 years to get my attention. I think it's time to start accumulating CSL.

The team at Citi agrees. It has a buy rating and a $325 price target on CSL's shares, which implies a potential upside of approximately 30%.

It recently highlighted that "CSL is trading on a PE FY25 of ~22x, a 6x discount to historical average." The broker also believes that "CSL is winning share [in the United States flu vaccine market] despite the lower vaccination rate."

Overall, quality of this standard doesn't go on sale very often and these brokers are urging investors to take advantage.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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 man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Healthcare Shares

Guess which ASX All Ords stock is rocketing 58% on big US news

What is getting investors excited today? Let's find out.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

3 reasons to buy this quality ASX 200 healthcare share today

A leading expert expects this outperforming ASX 200 healthcare share will keep running hot.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

Brokers tip 4 ASX 200 healthcare shares to buy now

Healthcare is a defensive sector that can provide useful cover for investors when the market is volatile.

Read more »

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

How Trump's tariffs have created 'upside potential' for CSL shares

A leading expert says CSL shares are now looking ‘cheap’.

Read more »

Shot of a young scientist looking stressed out while working on a computer in a lab.
Healthcare Shares

Telix shares crash 8% on US FDA blow

This high-flying stock has been hit with some bad news.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX All Ords stock is up 10% on big news

This high-flying stock just can't stop rising. What's going on?

Read more »

Teamwork, planning and meeting with doctors and laptop for medical, review and healthcare. Medicine, technology and internet with group of people for collaboration, diversity and support in hospital
Healthcare Shares

Telix shares rocket 15% on stellar Q1 sales update

Let's see how the company performed during the three months.

Read more »