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CSL Limited (ASX: CSL) shares having a positive start to the week.
In afternoon trade, the biotherapeutics company’s shares are up 1% to $297.29.
This leaves CSL’s shares on the cusp of breaking through the $300 mark once again.
Where are CSL’s shares heading?
The good news for investors is that one leading broker believes that CSL’s shares can rise beyond the $300 mark and keep on climbing.
According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on the company’s shares.
Based on where its shares trade today, this implies potential upside of more than 14% for investors over the next 12 months.
What did the broker say?
Citi notes that the company recently held its research and development (R&D) day.
Its analysts highlight that CSL plans to continue spending over US$1 billion on its R&D activities each year for the foreseeable future. And with exciting potential therapies such as CSL 112 in its pipeline, it’s hard to argue against this level of investment.
CSL held its annual event updating the market on its R&D programs. The R&D budget is significant at US$1.16bn in FY22 or ~11% of revenue. CSL will continue to spend ~10-11% of revenue on R&D annually. The pipeline now includes assets from recently acquired Vifor with two assets in Phase 3.
Our $340 TP includes $22.40 for the R&D portfolio (down from $23 on delays) – the main asset remains CSL112 (cardiovascular) at $20/share on which we will get Phase 3 data in Q1 CY24. Maintain Buy, $340 TP.