Why did the CSL share price smash the ASX 200 in April?

April has been kind to this healthcare giant's shares.

| 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

sdf

Unless something untoward happens later this session, the CSL Limited (ASX: CSL) share price will record a strong monthly gain in April.

As things stand, the biotherapeutics company's shares have risen a sizeable 5% since the turn of the month.

This compares favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which has recorded a respectable gain of 1.7% month to date.

Why is the CSL share price smashing the ASX 200?

While there hasn't been any real news out of the company to boost the CSL share price in April, there was a European investor site tour at the end of March that went down well with analysts.

For example, early in April, analysts at Morgan Stanley responded to the tour by reiterating their overweight rating and $339.00 price target on the company's shares. This suggests that there could still be plenty of room for them to climb higher despite April's heroics.

Goldman Sachs was also at the event and was pleased with what it heard. It commented:

Across site tours, presentations and various conversations throughout Marburg (Germany) and Bern (Switzerland), our key conclusion was that, having conducted an extensive program of expansion/improvement across fractionation and R&D efforts, CSL is now well positioned for a medium-term period of less capital-intensive growth (supporting our views that the current ROIC trough should markedly improve from here).

What else boosted its shares?

Also likely to be giving the CSL share price a lift in April was increased demand for defensive stocks after global recession fears grew.

Given that the healthcare sector is seen as defensive, investors appear to have been piling into some of the top stocks from this side of the market. This has led to the S&P/ASX 200 Health Care index recording a market-beating gain of 4% month to date.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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

Happy healthcare workers in a labs
Healthcare Shares

Macquarie initiates coverage of Neuren Pharmaceuticals shares; forecasts 45% upside

The broker described Neuren as a standout in the ASX biotech sector.

Read more »

A woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Does Macquarie think Cochlear shares are a buy, hold, or sell?

Macquarie has released a new note on Cochlear following the company's FY25 profit guidance change.

Read more »

Stethoscope with a piggy bank in the middle.
Healthcare Shares

Up 18% this year, does Macquarie expect NIB shares to go higher?

This expert has a bold prediction for NIB.

Read more »

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

Why is the Mesoblast share price up 11% in June?

The ASX biotech share reached a 10-week high of $1.94 today.

Read more »

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

Up 51% since the tariff pain, is it too late to buy Pro Medicus shares?

After rocketing higher, is the ASX healthcare share still an opportunity?

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Healthcare Shares

CSL shares push higher on US FDA approval

This biotech giant has been given a boost in the United States.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Healthcare Shares

Up 29% this year, does Macquarie expect Medibank Private shares to continue rising?

Medibank's explosive share price growth has caught the eye of this broker.

Read more »

Man in business suit carries box of personal effects
Healthcare Shares

Monash IVF shares jump 9% as CEO quits after second embryo incident

Two incidents at its clinics have cost this CEO his job.

Read more »