You would think CSL Limited (ASX: CSL) shares had done enough for ASX investors, rising from $30 in 2011 to over $190 today.
Let’s not forget that since then, loyal CSL shareholders have also received generous dividends of more $10. That’s a lot more than can be said of the likes of Telstra Corporation Ltd (ASX: TLS) or BHP Group Ltd (ASX: BHP).
About CSL
CSL is Australia’s largest (and many might say greatest) health and biotech company, specialising in biopharmaceuticals.
Founded in the late 1900s as the Commonwealth Serum Laboratories, ‘CSL’ was sold by the Australian Government to shareholders via the ASX in 1994 at only $2.30 a pop. It used the money to double its size through an international acquisition.
Today, CSL is a global leader in blood plasma vaccines (think: the flu, snake bite anti-venoms, etc.), providing relief for potentially life-threatening medical conditions.
What Are CSL Shares Worth?
While we will never use other analysts’ valuations or forecasts in our investing, knowing what other analysts think can help you to put your finger on what the market may be implying.
Right now, the average analyst valuation of CSL shares is about $205. That’s a little higher than CSL’s current share price of $193 and could signal it’s time to do further research. This could imply some healthy upside for investors going forward (note: there are no guarantees with analyst forecasts).
Indeed, as we always say, taking another investor’s valuation and running with it can also be incredibly hazardous to your returns because his or her valuation will be based on a set of assumptions which you may not agree with.
Buy, Hold or Sell
CSL is a great company with a strong competitive advantage in the form of intellectual property (IP) rights, know-how and scale. However, its shares have had a great run.
Moreover, it’s not the only company on the ASX with tremendous long-term potential. We recently put together a free investment valuation series for investors who hope to identify the next CSL (click here to take the course).
Alternatively, keep reading below to get the names of our expert analysts’ two favourite ASX growth shares…
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