These two ASX Stocks are off to a Good Start in 2023
The shares of the banking group Commonwealth Bank of Australia (AU:CBA) and biotechnology company CSL Ltd. (AU:CSL) have shown good growth since early 2023. Both stocks hit their 52-week highs in January 2023.
Here we used TipRanks tools like Stock Screener and Stock Comparison for the Australian market. These tools are a perfect way to screen and compare the stocks in a given market to make the right choice.
Let’s take a closer look at them.
CSL is a biotechnology company developing products in multiple areas including rare and serious diseases, influenza vaccines, iron deficiency and nephrology.
Since January 2023, CSL stock is up around 8%, also hitting its 52-week high. In the last year, the share price has increased by 17%.
As CSL is set to release its Q2 results for fiscal 2023, analysts have an encouraging view on the company. Australian brokerage firm Morgans believes this year could be a “breakout year” for the company as it recovers from the COVID slowdown.
Morgans expects corporate earnings to grow double-digit, driven by higher plasma withdrawals, the approval of HEMGENIX and its position in the influenza vaccine market. As one of the world’s leading suppliers of flu vaccines, the company has a strong influence on this market and is a strong investment argument for the stock.
The company’s recent approval of HEMGENIX, a gene therapy drug, will strengthen its position in the hemophilia treatment market. It’s also one of the company’s premium drugs, which could have a lasting impact on earnings.
What is the price target for CSL stock?
According to TipRanks rating consensus, CSL stock has a Strong Buy rating based on eight Buy and one Hold recommendations.
The average price target is AU$333.88, which represents a growth of 9.6% over the current price level.
Commonwealth Bank of Australia (CommBank)
CommBank is one of Australia’s leading banks, serving around 16 million customers worldwide.
The stock has benefited from the government’s various rounds of rate hikes in 2022, supporting the bank’s net interest margins. The stock is up nearly 21% over the past year and hit a record high in 2023.
On the other hand, analysts are concerned about recessionary pressures in the economy, which could lead to further bad debts for the bank.
While analysts aren’t predicting upside potential for the stock price, the stock is a must-buy for value investors. CommBank is known as a stable dividend stock with a yield of 3.51%. In 2022, the bank paid a dividend of $3.85 per share, and Morgan Stanley forecasts a 17% increase to $4.5 per share in 2023.
What is the forecast for the Commonwealth Bank of Australia share price?
According to the consensus of analysts at TipRanks, CommBank stock has a moderate Sell rating.
The average price target is AU$96.09, which is 12.5% below the current price level.
Shareholders are currently enjoying the stock ride with higher yields.
On the one hand, CSL stock is set for further growth with its market-leading vaccines and new drugs. On the other hand, analysts prefer CommBank because of its dividend payments and do not expect further share price growth.