The CSL Limited (ASX: CSL) share price has been a relatively positive performer during the coronavirus crisis.
The biotherapeutics company's shares are down approximately 10% from the high of $342.75 they reached on February 19.
As a comparison, the S&P/ASX 200 Index (ASX: XJO) is down 28% over the same period.
Why is CSL outperforming the ASX 200?
Whilst many shares have been sold off indiscriminately during the coronavirus crisis, investors have continued to hold onto CSL's shares.
This appears to be largely down to the belief that the company will be unaffected by the COVID-19 outbreak.
This is because the majority of CSL's therapies are used with conditions for which there are no real alternative treatments. Which should ensure that sales remain robust even during these tough times.
In addition to this, there is the potential for an increase in demand for convalescent plasma/immunoglobulins therapies. This is based on previous coronavirus outbreaks such as SARS and MERS, where CSL saw an increase in demand to treat severe respiratory indications.
And while there are concerns that the company's plasma collection could be impacted by the outbreak, I'm optimistic that donations will continue as normal. Especially given how its centres are classed as an essential service.
Should you invest?
I continue to believe that CSL is one of the highest quality businesses on the Australian share market and a great long term option.
I'm not alone with this view. According to a note out of UBS from last week, its analysts have retained their buy rating and $342.00 price target on the company's shares. This price target implies potential upside of 11% over the next 12 months excluding dividends.
It appears confident that CSL is well-positioned to deliver solid earnings growth over the next few years.
I think the broker is spot on with this assessment and feel CSL would be a quality buy and hold option along with fellow healthcare stars Nanosonics Ltd. (ASX: NAN) and ResMed Inc. (ASX: RMD).
