Here's why the CSL share price beat the market in April

CSL's shares beat the market in April…

| More on:
a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • CSL's shares were relatively positive performers in April
  • The biotherapeutics giant's shares beat the market with a modest gain
  • This appears to have been driven by improving plasma collections and bullish broker notes

The CSL Limited (ASX: CSL) share price was a relatively positive performer in April.

During the month, the biotherapeutics giant's shares rose a touch short of 2%.

This compares favourably to a disappointing 0.9% decline by the benchmark ASX 200 index over the same period.

Why did the CSL share price beat the market last month?

The key to the CSL share price strength last month appears to have been improving plasma collection industry data and the release of a number of positive broker notes.

In respect to the latter, analysts at Citi, Macquarie, and Morgan Stanley all reiterated the equivalent of buy ratings on the company's shares last month with price targets meaningfully higher than current levels.

What was said?

While all three brokers spoke very positively about CSL, the most bullish broker in the group was arguably Citi with its buy rating and $335.00 price target on its shares.

Based on the current CSL share price of $275.20, this implies potential upside of 22% for investors over the next 12 months.

Citi's analysts believe that the company's shares could be due for a re-rating to higher multiples in the coming months. This is expected to be supported by ongoing improvements in plasma collections and the impending acquisition of Swiss biotech giant Vifor Pharma.

Citi commented: "Over the next six months, we expect the market to focus on the strong underlying plasma market demand, and the closure the Vifor deal, both of which should lead to strength in the share price. Maintain Buy. A$335 TP."

All in all, the broker appears to believe that now could be an opportune time for investors to snap up shares in one of Australia's highest quality companies.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro 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 Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Why this ASX All Ords stock is jumping 9% today

What has put a rocket under this stock on Friday? Let's find out.

Read more »

A hipster dude leaps in the air with glee, seeing positive news on his tablet.
Healthcare Shares

Which ASX 200 stock is jumping 11% on big news?

Investors are responding very positively to a big announcement.

Read more »

Senior woman using cpap machine to stop choking and snoring from obstructive sleep apnoea with bokeh and morning light background.
Healthcare Shares

Up more than 75% since October 2023 — are ResMed shares a buy, hold or sell?

ResMed shares have surged more than 75% since October 2023, but is it too late to buy? We break down…

Read more »

Stethoscope with a piggy bank in the middle.
Broker Notes

Australian health insurance: Does Macquarie prefer Medibank or NIB shares?

Medibank and NIB shares have both surged in 2025. Here’s what Macquarie expects now.

Read more »

Two brokers analysing stocks.
Healthcare Shares

Why does Macquarie think Fisher & Paykel shares are a buy?

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares have been on form over the past 12 months. During this…

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Which small cap ASX share is jumping 10% on strong results

Investors have been bidding this stock higher today. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks

Macquarie updated its target price on these three ASX All Ords healthcare stocks.

Read more »