The CSL Limited (ASX: CSL) share price has been out of form in 2022.
Since the start of the year, the biotherapeutics giant's shares have fallen 8% to $268.04.
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Will things start to improve for the CSL share price?
While the weakness in the CSL share price in 2022 has been disappointing, one leading broker appears to see it as a buying opportunity.
A recent note out of Citi reveals that its analysts have a buy rating and $335.00 price target on the company's shares.
Based on the current CSL share price, this implies potential upside of 25% for investors over the next 12 months.
What is the broker saying?
CSL believes that recent industry data is pointing to continued improvement in plasma collections and strong underlying demand.
The broker appears to see this as a sign that trading conditions are normalising, which will lead to the market shifting its focus from supply to demand. And with demand remaining strong, it believes this will be good news for the CSL share price.
Citi commented:
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.
Citi also feels that the market is underestimating CSL's growth potential in the coming years and is forecasting stronger than consensus earnings.
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, Citi appears to believe now could prove to be an opportune time to invest based on this note.
