The CSL Ltd (ASX: CSL) share price has been one of the worst performers over the past year within the S&P/ASX 200 Index (ASX: XJO). It has dropped by approximately 30% in the last 12 months, as the below chart shows.
The business has lost some investor confidence, with reductions of forecasts of how much profit it could make for the foreseeable future, though the business is trying its best to reduce costs and put its money into compelling healthcare products.
Let's take a look at what experts think may happen with the CSL share price over the next year.
A price target is where analysts think the business will trading in a year from now. Of course, a forecast is not necessarily going to play out as expected, but if analysts are very positive on the business, then it could indicate there's an appealing opportunity staring us in the face.
According to CMC Markets, there are currently nine buy ratings and three hold ratings on the business. That's a large number of positive ratings on the ASX healthcare share compared to most other ASX blue-chip shares.
CMC Markets has also collated the price targets for the CSL share price. A price target is where the analyst thinks the share price will be in 12 months from now.
According to CMC Markets, of the recent analyst views on the business, there is an average price target of $245.55. That implies a possible rise of 33% over the next year, which would very likely be a market-beating return, if it reached the price target.
That's just the average price target for CSL. The highest price target for the CSL share price is $284.43, which suggests the ASX healthcare share could rise by around 50% from where it is today.
Even the lowest price target of $195.55 looks somewhat promising for the CSL share price, implying a rise of 6%.
Analysts seem to have a unanimous view that the business is undervalued.
One of the brokers that likes CSL is UBS. The broker forecasts that CSL could generate US$3.46 billion of net profit in FY26, or US$7.13 in earnings per share (EPS) terms.
That means its currently trading at 17x FY26's estimated earnings. The price/earnings (P/E) ratio is a lot cheaper than it has traded at over the last several years. Time will tell how undervalued the business is.
The post Here are the latest growth forecasts for the CSL share price appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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