Insights

Is the CSL (ASX:CSL) share price good value?

Is the CSL Limited (ASX:CSL) share price good value right now? Here’s why it might be…
The post Is the CSL (ASX:CSL) share price good value? appeared first on Motley Fool Australia. –

is it a buy

CSL Limited (ASX: CSL), which was previously known as the Commonwealth Serum Laboratories, was founded back in 1916 has gone on to become one of the world’s leading specialty biotechnology companies.

It is now made up of two businesses – CSL Behring and Seqirus.

CSL Behring is the biotherapeutics side of the business focused on developing life-saving products from human blood plasma. Among its leading products you’ll find the likes of Haegarda, Hizentra, and Privigen.

Whereas Seqirus is the company’s vaccine business, which has really come to prominence this year because of the COVID-19 pandemic. It recently announced plans to invest ~$800 million in the construction of an influenza vaccine manufacturing facility in Melbourne.

This follows the announcement of a major deal with the Federal Government for the supply of a range of life-saving treatments for over 10 years. This includes anti-venoms for Australian snakes, spiders and marine creatures, and influenza pandemic protection.

Research and development.

One of the keys to the company’s success over the years has been its investment in research and development (R&D).

Every year CSL invests in the region of 10% to 12% of its sales revenue back into its R&D activities. This means almost US$1 billion was invested in these activities in FY 2020.

This has helped ensure that CSL is at the forefront of innovation in the industry and has led to it developing a wide portfolio of therapies and vaccines generating billions of dollars of sales each year.

Pleasingly, the company’s investments in recent years means that it has a burgeoning R&D pipeline, positioning it perfectly for growth.

Is the CSL share price in the buy zone?

It is partly because of this pipeline that one leading broker is recommending CSL as a buy right now.

Following its R&D briefing last month, UBS put a buy rating and $346.00 price target on its shares.

It notes that product development has been a key driver of growth over the last few years and appears confident that this will be the case in the future. Particularly given its opportunities in antibodies, gene therapies, and COVID-19.

Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the CSL (ASX:CSL) share price good value? appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!