What is driving the CSL share price higher today?

CSL shares are having a good day…

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Key points

  • CSL shares are on form on Wednesday
  • There have been a couple of catalysts for this solid gain
  • CSL's shares have been boosted by legal news and a couple of broker notes

The CSL Limited (ASX: CSL) share price has been a positive performer on Wednesday.

In afternoon trade, the biotherapeutics giant’s shares are up 2.5% to $277.12.

This compares favourably to a 0.1% decline by the ASX 200 index.

Why is the CSL share price rising today?

There have been a couple of catalysts for the rise in the CSL share price today.

One has been a legal breakthrough in the United States and the other is the release of a couple of bullish broker notes.

In respect to the former, according to the SMH, CSL and Grifols now have a right to appeal the banning of Mexican citizens from crossing the border to donate plasma. Its previous appeal to have the ban overturned was rejected, but that rejection was found to have been improperly dismissed.

And while there is no guarantee that the two parties will be able to successfully overturn the decision, it is a step in the right direction.

What else?

Also giving the CSL share price a boost today has been the release of broker notes out of Jefferies and Morgan Stanley.

Both brokers have retained the equivalent of buy ratings with $315 and $310 price targets, respectively.

Jefferies highlights that CSL’s impending shift to a new plasma collection system could be a big boost to sales and margins over the coming years. It commented: “We believe CSL has this relationship with Terumo exclusively for 4-5 years, and so these benefits are likely to be sustainable.”

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 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.

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