The CSL Limited (ASX: CSL) share price has edged lower in morning trade on Tuesday.
The biotherapeutics company's shares are currently down almost 0.5% to $194.73.
Should you buy the dip?
This latest decline means the CSL share price is now trading 16% lower than its 52-week high of $232.69.
Given the quality of the company and its strong long-term growth potential, I believe this pullback is a buying opportunity for investors.
I'm not along in thinking this way. A note out of Goldman Sachs this morning reveals that its analysts have reiterated their buy rating and $213.00 price target on the company's shares.
The broker held firm with its positive rating after attending the 2019 International Plasma Protein Congress (IPPC) in Amsterdam, Netherlands.
According to the note, Goldman Sachs used the event to assess supply/demand dynamics in the worldwide plasma protein market, global pricing trends related to key product categories, and market share trends among the largest competitors as well as the smaller players.
Historically, the broker has found IPPC to be a good predictor of market trends. Which could be good news for CSL as Goldman's analysts "came away from IPPC confident on the global plasma market's dynamics."
It believes that global volume growth is currently tracking above the upper end of the 6-7% medium-term range. This has been driven in particular by strong global demand for immunoglobulins, where most industry participants see the current 8% rate growth as sustainable.
Furthermore, with supply growth not keeping up with demand growth, the broker sees opportunities for the industry to increase prices in 2019.
Overall, Goldman Sachs believes the recent strength in CSL's flagship immunoglobulins portfolio will continue and suspects that the record gross margins achieved in the first half could be sustainable through the near-term.
Should you invest?
I think the broker makes some great points on CSL and feel confident that these tailwinds have put the company in a position to deliver another solid full year result in FY 2019.
I believe this makes its shares a standout buy along with fellow healthcare stars Cochlear Limited (ASX: COH) and ResMed Inc. (ASX: RMD).
