Morgans Financial has upgraded its rating for CSL shares from “add” to “buy,” setting a short-term share price target of $303.70. This target suggests a potential underlying growth of 25 per cent for the biotech giant. CSL is a global biotechnology leader, researching, developing, manufacturing, and marketing a range of life-saving and life-enhancing biotherapies. The company operates primarily in the plasma fractionation and recombinant protein technology fields.
The upgrade follows a recent assessment by Morningstar, which stated on Thursday that CSL is currently being undervalued by the market. Morningstar’s analysis comes despite the potential risk of a 200 per cent tariff on pharmaceuticals, a measure previously flagged by former US President Donald Trump amid ongoing trade tensions. This tariff remains a concern for the broader pharmaceutical industry.
Morningstar has maintained its “fair value” share price estimate for CSL at $325, which indicates an even more optimistic underlying growth projection of approximately 33 per cent. This valuation highlights the discrepancy between the perceived market value and Morningstar’s intrinsic value assessment of the company.
CSL shares closed at $242.41 on Thursday, reflecting a year-to-date decline of almost 14 per cent. The analysts’ upgrade suggests a strong belief in CSL’s long-term prospects, viewing the current share price as an attractive entry point for investors.
