The CSL Limited (ASX: CSL) share price has tumbled lower with the market in 2022.
Since the start of the year, the biotherapeutics giant’s shares have lost 8% of their value.
In light of this, investors may be wondering if the CSL share price is now trading at an attractive enough level to start an investment.
Is the CSL share price in the buy zone?
According to a note out of Citi, its analysts believe that CSL’s shares are great value at the current level.
The note reveals that the broker has retained its buy rating but trimmed its price target slightly to $330.00.
This implies potential upside of 22% for investors over the next 12 months.
What did the broker say?
Citi has been looking at the plasma industry again and was pleased with what it saw.
This includes strong underlying demand for plasma products and much-improved plasma collection conditions. In light of the latter, the broker feels that the market will move on from its collections focus, which has been weighing on the CSL share price, and focus more on demand.
Citi’s analysts explained:
Recently, there have been several data points influencing our view on the plasma sector. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.
Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand.
The broker expects the above to “lead to strength in the CSL share price.” Which could bode well for investors in the near future.