Australia's first $100 stock

Australia's sharemarket is trading at a near seven year high, with a handful of stocks edging closer to the $100 per share level. Which will get there first? SBS World News asks some market watchers to give us their predictions.

ASX 200

The Australian sharemarket has pulled back a little in recent days, but it is still trading near seven year highs and is approaching the 6,000 point level.

As for stocks specifically, there are three edging closer to the $100 per share point.

The $100 per share mark may be just a psychological level and one we've reached before, but it is still one worth watching.

Rio Tinto hit a high of $157 a share in 2008, CSL rose to $109 in 2007 before it underwent a share split and fertilizer company Incitec Pivot's shares traded above $200 in that same year. Macquarie Group went close, at $98 just before the global financial crisis hit in 2007.

Those share prices have come down thanks to the GFC, and while it has been a while since an Australian stock broke through the $100 per share mark, but there are three stocks, CSL, Cochlear and the Commonwealth Bank racing to that level right now.

SBS World News decided to ask some market experts, which one they believe will get there first.

Current prices (close of trade Thursday, March 5, 2015)

CSL $92.00

Cochlear $88.87

CBA $91.12

What the experts say:

Andrew Wielandt (Dornbusch Partners)

“CBA is likely to be the first share to $100 out of COH, MQG & CSL. In an environment where interest rates are continuing to trend down, property markets (in particular Sydney) continue to have high levels of activity and bank’s provisions for bad and doubtful debts continue to be at historically low levels, this plays right into CBA’s hands.

"It doesn’t get much better for banks at the moment and any significant weakness in the property market/economy will see CBA’s share price fall back to the average consensus valuation of closer to $85."

Ben Le Brun (OptionsXpress)

"I am confident that it will be CSL.I think CBA may struggle to get there in the short term.

"Cochlear has the potential because a move higher could come shortly and sharply via short covering.

"CSL is a business that consistently delivers defensive style top line revenue growth. They are the bellwether name in the healthcare space and have a good pipeline of new products due to hit the market. We saw them miss earnings estimates in February but the stock was only out of favour for one session before it was pushed higher again by investors. A deterioration in the AUD will only speed up its march toward $100 and beyond."

Chris Weston (IG Markets)

"I am in camp CBA, followed by CSL.

"There is no denying the momentum in this name right now, pullbacks are shallow and supported with real conviction. The investment case is still there despite calls of a bubble from some in the market and the prospect of a cash rate of 1.5 per cent by year end keeps both retail and institutional money flowing into this name.

"Housing is flying, while banks are lowering deposit rates by more than variable rates, so margins should be supported. At some stage there will be a real risk around holding banks, but that time is not now, so stay long until proven wrong."

James Rosenberg (Macquarie Group)

"CSL, Washington H Soul Pattinson & Brickworks are already “effectively” there – but they have had share splits over the years.

"I’ll run with CSL:

"All three are good quality companies, performing well, and the market has already forgiven CSL’s relatively soft result. Some of the headwinds affecting the first half are unlikely to last long (competitive pressures in the US). Market share gains in most product categories as well as currency tailwinds should see CSL breach the $100 barrier in a tight finish from CBA."

Julia Lee (Bell Direct)

"CBA.

"The real question is which stock is most likely to benefit in a falling interest rate environment? The answer to that question is CBA. CBA is most likely to hit the $100 mark first in the current environment."

Elio D'Amato (Lincoln Indicators)

"My pick would be CSL. The continuous growth in demand of plasma derived products globally, a weaker AUD and CSL’s share buyback plan provides a healthy backdrop for CSL.

"Expansion into China, compelling growth in speciality products and the contributions from recombinant Factor IX and Novartis (flu acquisition) next financial year also provides the company with the necessary growth catalysts over the next 18 months."

Francesco De Stradis (Ord Minnett)

"I might preface this by highlighting CSL has already hit $100 some time ago (in fact current price would be $276) if you take into consideration the 3:1 split back in 2007. 

"CSL has a track record in unlocking value in its Research & Development portfolio.  Further expansion across its product portfolio, as well as positive momentum in its Breakthrough Medicines portfolio, should contribute strong growth to CSL’s earnings. This outlook for earnings will underpin a rising CSL share price."

Kim Slater (County Securities)

"It will be a race between CSL and CBA, at the moment my money is on CSL.

"Another rate cut based on higher unemployment figures will send the UD crashing down through 75 cents, and this will give CSL the next leg up. Although it is fair to say a fair degree of this has been anticipated, there is still a final blow off in price."