The CSL Limited (ASX: CSL) share price continued its positive form and hit a new all-time high on Wednesday.
The biotherapeutics company's shares climbed to a record high of $321.22.
Why is the CSL share price at a record high?
Investors have been fighting to get hold of CSL's shares over the last 12 months thanks to its strong performance in FY 2019 and expectations for a stronger than expected result in the current financial year.
One broker that has recently suggested that CSL could positively surprise during earnings season is Goldman Sachs.
According to a note out of the investment bank, it believes there are three key areas for upside surprise.
The first is highly favourable immunoglobulins market dynamics. Goldman Sachs notes that industry feedback remains consistently positive on the near/mid-term trajectory of its immunoglobulins. It has forecast double-digit 3-year CAGRs for both Privigen (+13%) and Hizentra (+17%).
This is expected to be driven by improved awareness/diagnosis, increasing utilisation for secondary immunodeficiencies, and positive mix-shifts into SCIG and CIDP.
Goldman Sachs also notes that the current pricing environment is supportive, which it expects to contribute to a stable gross margin development across the Behring business.
The broker also believes another upside surprise could come from a key Kcentra competitor missing the mark.
Goldman notes that the sales of Andexxa (a key competitor to CSL's Kcentra) were materially lower than expected in the fourth quarter. This was due to the lower utilisation in certain hospitals that were looking to manage costs following pharmacy budget reviews.
As Kcentra's gross price is a fifth of the cost of Andexxa, Goldman believes CSL could have benefited from these dynamics.
A final upside surprise could come from a strong start to northern hemisphere flu season.
It notes that the U.S. CDC's data has demonstrated a strong start to the 2019/20 flu season. Goldman feels this bodes well for vaccine volumes through the critical first half period.
In light of this, the broker has re-affirmed its positive stance on the near-term trajectory in the Seqirus vaccine business.
Elsewhere, the broker has suggested that both Afterpay Ltd (ASX: APT) and JB Hi-Fi Limited (ASX: JBH) could positively surprise later this month when they release their respective results.
