On the other hand:
Morgan Stanley analysts say CSL Limited (ASX : CSL) shares could top $350 if their bull case for the company eventuates. Currently trading at over $280, shares in CSL are up nearly 50% since a year ago.
CSL’s market capitalisation
At $350 a share, the market capitalisation of CSL (currently more than $127 billion) would be higher than that of the Commonwealth Bank of Australia (ASX: CBA), which has a market capitalisation of nearly $143 billion. According to The Australian, Morgan Stanley predicts that a scarcity of growth in the large-cap sector of the ASX will help push CSL’s price higher.
The bull case
“Given CSL’s superior ASX relative size, liquidity and growth . . . The market will continue to price delivery of bull case scenarios and longer-term disruption risk will be ignored,” Morgan Stanley said in a note to clients.
The broker has increased the weighting of its bull case from 40% to 45% and reduced the weighting of its bear case from 10% to 5%.
Morgan Stanley’s bull case assumes trials in CSL’s heart attack therapy (CSL 112) go to plan, its haemophilia medicines reach US$1 billion in revenue a year, its HAE franchise reaches US$1 billion in revenue, and efficiency gains of US$70 million a year are realised in plasma centres. The broker has lifted its price target to $290 and remains overweight due to near-term momentum.
Earnings growth
According to The Australian, Morgan Stanley expects a 3-year earnings per share compound annual growth rate of around 13% for CSL. Strong immunoglobulin growth and lower flu returns are predicted to contribute to 2020 net profit at the top end of guidance.
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Last
$307.80 |
Change
2.460(0.81%) |
Mkt cap ! $148.7B |
Open | High | Low | Value | Volume |
$305.41 | $308.69 | $304.34 | $158.2M | 514.7K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 13 | $307.77 |
Sellers (Offers)
Price($) | Vol. | No. |
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$307.80 | 4197 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 13 | 307.770 |
1 | 26 | 307.260 |
1 | 73 | 307.130 |
1 | 1219 | 307.050 |
1 | 1219 | 306.800 |
Price($) | Vol. | No. |
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307.800 | 4197 | 1 |
307.840 | 1177 | 1 |
307.900 | 615 | 1 |
307.950 | 1256 | 1 |
308.020 | 1194 | 1 |
Last trade - 16.10pm 19/08/2024 (20 minute delay) ? |
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