Why this broker is tipping 'strength in the CSL share price'

A leading broker is feeling positive about the CSL share price…

| More on:
A scientist in a white coat and glasses puts her arms in the air in a sign of strength and success.

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

The CSL Limited (ASX: CSL) share price has tumbled lower with the market in 2022.

Since the start of the year, the biotherapeutics giant's shares have lost 8% of their value.

In light of this, investors may be wondering if the CSL share price is now trading at an attractive enough level to start an investment.

Is the CSL share price in the buy zone?

According to a note out of Citi, its analysts believe that CSL's shares are great value at the current level.

The note reveals that the broker has retained its buy rating but trimmed its price target slightly to $330.00.

This implies potential upside of 22% for investors over the next 12 months.

What did the broker say?

Citi has been looking at the plasma industry again and was pleased with what it saw.

This includes strong underlying demand for plasma products and much-improved plasma collection conditions. In light of the latter, the broker feels that the market will move on from its collections focus, which has been weighing on the CSL share price, and focus more on demand.

Citi's analysts explained:

Recently, there have been several data points influencing our view on the plasma sector. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.

Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand.

The broker expects the above to "lead to strength in the CSL share price." Which could bode well for investors in the near future.

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 no position in any of the stocks mentioned. 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 young man goes over his finances and investment portfolio at home.
Healthcare Shares

Down 20%, is the NIB share price undervalued?

Here's what Goldman Sachs is saying about this blue chip stock.

Read more »

four excited doctors with their hands in the air
Healthcare Shares

Sigma Healthcare shares rocket 39% on Chemist Warehouse merger approval

The ACCC doesn't believe the company's merger with Chemist Warehouse will lessen competition.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

ASX 200 healthcare stock rockets on $75 million news

This marks another positive step for the company.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

CSL shares are in the red for 2024. Are they a buy?

Meanwhile, the broader market has extended to new highs this year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Share Market News

Guess which ASX 300 stock is jumping 11% on big news

Big news is giving this stock an even bigger lift on Tuesday. What's happening?

Read more »

Two lab workers fist pump each other.
Healthcare Shares

Guess which ASX 200 healthcare stock is starting the week with a bang on big news!

What is getting investors excited today? Let's find out.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

2 All Ords ASX healthcare shares making BIG moves on quarterly updates

These two ASX healthcare companies are seeing heavy trading on Thursday.

Read more »