Our market is in for a rough ride but the weakness could present longer-term investors with a buying opportunity for CSL Limited (ASX: CSL) shares.
Shares in the global biotech slipped 0.1% in early trade before bouncing 0.2% higher at $278.72.
That's a good outcome given that the S&P/ASX 200 Index (ASX: XJO) crashed 1.5% on recession fears.
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Why the CSL share price is a long-term buy
The volatility is likely to stay for a while, but that won't change the positive view on the shares from Medallion Financial Group's Jean-Claude Perrottet.
New technology and demand for flu vaccinations are some of the reasons for his "buy" recommendation on the CSL share price, according to The Bull. He said:
Full year results for this blood products company were positive in response to strong demand for flu vaccines, in our view.
CSL is rolling out new technology in the US, which reduces plasma donation procedure times by about 30 per cent. These innovations should improve the collection process and, as a result, we retain a positive long-term view on CSL.
Court ruling gives a secondary boost
He isn't the only one that is bullish on the CSL share price either. This is particularly so after a US District Court for the District of Columbia issued a favourable ruling on blood donations.
The preliminary injection prevents US border officials from enforcing a ban on paid plasma donations from Mexicans that enter the US on USB1/B2non-immigrant visas, noted Morgan Stanley.
US border officials had previously said that such donations were a violation of the terms of the visa.
What is the CSL share price worth?
Morgan Stanley commented:
CSL has 304 centers in the US with ~16 near the US/Mexican Border – which we estimate may have accounted for ~10% of plasma collections. If the US border issue is resolved this would be a clear positive for CSL.
Morgan Stanley has an overweight recommendation on the CSL share price with a price target of $323 a share.
This positive view was echoed by Citigroup, although the broker doesn't think this development has a major impact on CSL.
Citi said:
This is a positive for the industry which has just recently seen plasma collections reach pre-pandemic levels. For CSL the impact will positive, but relatively small.
Nonetheless, Citi is recommending investors buy the CSL share price. Its 12-moth price target is $340 a share.
