CSL Limited (ASX: CSL) shares continued their recent climb today, up 0.38% to $293.81 at the market close.
The ASX biotech behemoth is up by more than 11% in the past four weeks. That performance is well beyond the S&P/ASX All Ordinaries Index (ASX: XJO), which is down about 1% over the same period.
Let's take a look at what's behind this share price movement for CSL.
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Is the CSL share price rising on momentum?
CSL hasn't released any price-sensitive news to the market since 12 May. So it's certainly not company news that is motivating ASX investors to buy the blue-chip share.
However, CSL has attracted plenty of broker backing over the past month. Perhaps this has inspired new investor confidence.
In addition, the CSL share price has been weak for a while and remains well off its pre-COVID highs.
It was always only a matter of time before investors bought back into CSL, as the impact of COVID dies down.
After all, CSL is the epitome of quality and a quintessential blue-chip darling on the ASX. It's currently the third-largest company in the ASX 200 with a market capitalisation of $141 billion.
So, maybe investors have decided now is the time?
What are the brokers saying about CSL?
My Fool colleague James reports today that Morgan Stanley has retained its overweight rating on CSL with a share price target of $312. Macquarie also says buy with the same price target.
Citi also has a buy rating with a more ambitious share price target of $330 for CSL.
Citi analysts commented:
With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand. This should lead to strength in the CSL share price.
Last week, fellow Fool Tony Yoo also reported that 12 out of 13 analysts rate CSL a buy, according to CMC Markets. Ten of those 12 call it a strong buy.
The pandemic impact on the CSL share price
CSL is a global biotechnology company that manufactures biotherapies and vaccines.
Overall, CSL was a COVID-19 loser. In the initial pandemic market crash of 2020, CSL shares fell from around $336 in February to about $270 in March. As the pandemic rolled on, CSL shares went lower to about $250 in March 2021. They returned to the same level in February this year.
This happened because CSL relies on blood plasma donations to develop its medicines and vaccines. Lockdowns around the world made this exceptionally difficult. That was a bit of a problem given that CSL's blood plasma division generates 70% of its revenue.
Things have changed
As my Fool colleague Monica reported in May, plasma collections are now roughly back to pre-pandemic levels. CSL is also using new technology to reduce the time it takes to donate plasma by 30%.
At the moment, CSL is awaiting the finalisation of its acquisition of Swiss giant Vifor Pharma AG.
Vifor is a leading global producer of products to treat kidney disease and iron deficiency. CSL expected to close the $17 billion deal in June but told the ASX in May that there would be a delay.
In a statement, CSL said it "expects the regulatory approval process to take a few more months".
Regardless, the Vifor deal represents a synergistic expansion that bodes well for the CSL share price.
As we reported, the Vifor acquisition is "expected to be low-to-mid teens NPATA per share accretive in the first full year of CSL ownership, including full run rate cost synergies".
