Is the CSL
(ASX: CSL) share price worth just $200? It’s what some analysts seem to think.
What is CSL?
is Australia’s largest (and some might say best) healthcare company, specialising in biopharmaceuticals. Founded in the late 1900s as the Commonwealth Serum Laboratories, CSL was sold by the Australian Government to Australian investors via the share market in 1994 at $2.30 per share, at which time it doubled its size through an international acquisition. CSL also split its shares 1-for-3. Meaning, the first investors’ true price was closer to just $0.77 each.
Nowadays, CSL is a global leader in blood plasma vaccines (think: the flu) and antivenoms, providing relief for potentially life-threatening medical conditions.
Is CSL worth just $200?
According to WSJ, CSL has an average price target of around $200. That means that on average, analysts think in 12 months the CSL share price will fall to $200. Will it? Price targets are just a guess. No-one can truly know what prices will be in the future, particularly with everything that is going on right now.
CSL is a well-respected blue chip on the ASX. It pours enormous amounts of money in R&D every year. It’s an important part of the healthcare system.
To get to $200 it would need to fall another 32% from today’s price. How likely is that? Particularly with how low interest rates have gone in Australia and the US? I think it’s quite unlikely, unless the whole market is crunched which I think is unlikely.
But because CSL hasn’t fallen much during this period, I’d prefer buying other shares at cheaper prices. Like the ones below.
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
