The CSL Limited (ASX: CSL) share price closed Thursday's session up 1.55%, trading at $286.74.
This is in line with the performance of ASX healthcare shares in general today. The S&P/ASX 200 Health Care (ASX: XHJ) finished up 1.6%. The S&P/ASX 200 Index (ASX: XJO) was up 1.44% at the close.
The boost to the CSL share price today comes despite some predictions from top broker JP Morgan regarding CSL's newly-acquired Vifor business.
In a recent note to clients, analyst David Low said the broker had cut its expectations for Vifor's contribution to CSL.
According to The Australian, JP Morgan downgraded Vifor's contribution by 8% for FY23 and 3% for FY24.
After reviewing Vifor's June half accounts, Low said:
We attribute the weaker contribution to the drop in dialysis patients due to 'excess COVID-19 mortality' as reported by Fresenius Medical Care and its key competitor.
While it will take time for patient numbers to recover, we believe this is a short-term issue which was understood by CSL when it bid for Vifor in December 2021.
According to the article, a forecasted boost to CSL's Behring sales and margins in FY24 may offset this. The boost is anticipated due to Mexican plasma donations recommencing after a recent court decision.
So, while the broker expects lower earnings per share (EPS), it retains an overweight rating on CSL stock.
Its 12-month share price target for CSL is $330. That's a potential 14.5% upside on today's closing price.
That's on par with the price target from the team at Macquarie. They're tipping the CSL share price to reach $329.50 this time next year, my Fool mate Brendon Lau reports.
Citigroup is more bullish with a price target of $340 on CSL shares. That would take CSL beyond its pre-pandemic record high of $336.40 per share recorded in February 2020.
According to the AFR article, the biotech will provide an investor briefing on 17 October.
CSL will hold its annual general meeting on 12 October.
