It has been an unusually disappointing year for the CSL Limited (ASX: CSL) share price.
The biotechnology giant's shares have thoroughly underperformed the market during this time and are trading significantly lower than their 52-week high.
In fact, with the CSL share price currently fetching $263.40, it is down 21% from its high of $332.68.
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Why is the CSL share price under pressure?
The weakness in the CSL share price has been driven largely by concerns over plasma collection headwinds.
As well as being impacted by social distancing initiatives, COVID stimulus payments have prevented some traditional donors from donating. This has led to a reduction in supply and an increase in costs.
Given how plasma is a vital component in many of CSL's most lucrative therapies, this has the potential to weigh on margins in the short term.
However, it is important to understand that this is a temporary headwind and not structural. In light of this, once the pandemic passes, plasma collections should become far easier and costs should inevitably reduce.
In the meantime, increased demand for influenza vaccines looks set to offset some of this headwind.
Another concern that appears to be weighing on investor sentiment is Argenx's FcRn CIDP therapy, which is under development. This has the potential to be a bit of a game changer in the industry and could steal away some immunoglobulin sales in the future.
Is this a buying opportunity?
A number of brokers believe that the CSL share price is trading at a very attractive level.
For example, UBS currently has a buy rating and $330.00 price target and Credit Suisse has an outperform rating and $315.00 price target.
UBS' price target implies potential upside of 25% over the next 12 months. Whereas Credit Suisse's price target represents upside of just under 20%.
It is also worth noting that the latter broker isn't worried about Argenx's FcRn CIDP therapy. Even if it were a success, the broker believes demand is growing strong enough to accommodate both therapies.
All in all, these brokers appear to believe that now would be an opportune time to buy CSL shares.
