Here’s why the CSL share price beat the market in April

CSL’s shares beat the market in April…

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Key points

  • CSL's shares were relatively positive performers in April
  • The biotherapeutics giant's shares beat the market with a modest gain
  • This appears to have been driven by improving plasma collections and bullish broker notes

The CSL Limited (ASX: CSL) share price was a relatively positive performer in April.

During the month, the biotherapeutics giant’s shares rose a touch short of 2%.

This compares favourably to a disappointing 0.9% decline by the benchmark ASX 200 index over the same period.

Why did the CSL share price beat the market last month?

The key to the CSL share price strength last month appears to have been improving plasma collection industry data and the release of a number of positive broker notes.

In respect to the latter, analysts at Citi, Macquarie, and Morgan Stanley all reiterated the equivalent of buy ratings on the company’s shares last month with price targets meaningfully higher than current levels.

What was said?

While all three brokers spoke very positively about CSL, the most bullish broker in the group was arguably Citi with its buy rating and $335.00 price target on its shares.

Based on the current CSL share price of $275.20, this implies potential upside of 22% for investors over the next 12 months.

Citi’s analysts believe that the company’s shares could be due for a re-rating to higher multiples in the coming months. This is expected to be supported by ongoing improvements in plasma collections and the impending acquisition of Swiss biotech giant Vifor Pharma.

Citi commented: “Over the next six months, we expect the market to focus on the strong underlying plasma market demand, and the closure the Vifor deal, both of which should lead to strength in the share price. Maintain Buy. A$335 TP.”

All in all, the broker appears to believe that now could be an opportune time for investors to snap up shares in one of Australia’s highest quality companies.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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