The CSL Limited (ASX: CSL) share price has started the week in the red.
In afternoon trade, the biotherapeutics giant’s shares are down 1.5% to $276.79.
Where next for the CSL share price?
According to a note out of Citi, its analysts believe the CSL share price could be heading higher from here.
The note reveals that its analysts have retained their buy rating and $335.00 price target on the company’s shares.
Based on the current CSL share price, this implies potential upside of 21% for investors over the next 12 months.
What is the broker saying?
Citi has been looking at industry data and believes that it is pointing to continued improvement in plasma collections and strong underlying demand.
It believes this supports its view that the key drivers of the CSL share price will shift in the near future to product demand and the acquisition of Vifor Pharma.
The latest quarterly results from Grifols, Takeda and Haemonetics, and recent comments from CSL are all highlighting the continued improvement in plasma collection and strong underlying demand for plasma products.
This is consistent with our view that over the next six months, we expect the market to shift its focus to the strong underlying plasma product demand, and the closure the Vifor deal, both of which should lead to strength in the share price.
Our FY23-24 EPS estimates remain 5-6% above consensus (we have included the Vifor consensus estimates in our forecasts). The next catalyst will be the closure of the Vifor transaction which is now expected to complete by the end of Sept (previously June).
All in all, the broker appears to see the CSL share price as trading at an attractive level for investors at present and I would have to agree due to the points outlined above.