The CSL Limited (ASX: CSL) share price had an eventful month in June.
Although the biotherapeutics giant’s shares ended the period largely flat, this was actually a very good outcome for investors.
That’s because the CSL share price was down by 6% in the middle of the month but rebounded strongly.
Furthermore, it was significantly better than the performance of the ASX 200 index, which lost approximately 9% of its value during the period.
Why did the CSL share price outperform?
The outperformance of the CSL share price appears to have been driven by the release of some bullish broker notes.
One of those came from the team at Citi, which retained its buy rating with a slightly trimmed price target of $330.00. This price target implies potential upside of almost 20% for investors over the next 12 months.
Citi highlighted that plasma collection levels have now returned to pre-COVID levels and immunoglobulins pricing is increasing. And with demand remaining strong for plasma products, the broker appears to believe the tide is now turning for CSL.
In light of this, the broker suspects that the market will start to focus on demand rather than supply. And given that demand is strong, it feels that this should bode well for the CSL share price performance in the coming months.
Recently, there have been several data points influencing our view on the plasma sector. In this report, we review them and the implications for the sector as a whole. 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. This should lead to strength in the CSL share price. Maintain Buy, A$330 TP.