The CSL Limited (ASX: CSL) share price is out of form this week.
Since the start of the week, the biotherapeutics company's shares have fallen 3.2% to $271.64.
This is despite the company releasing an update on its new CSL Vifor business earlier this week.
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Can the CSL share price bounce back?
The team at Morgans was pleased with what it saw at the company's presentation earlier this week.
In light of this, it continues to see CSL as a share to buy and has retained its add rating with a trimmed price target of $312.20.
Based on the current CSL share price, this implies potential of 15% for investors over the next 12 months.
What did the broker say?
Morgans notes that the new CSL Vifor business has a strong position across several core therapy areas. It commented:
Vifor offers a leading portfolio across three core therapy areas (Iron deficiency; Dialysis; and Nephrology), with strong brands and a deep pipeline poised to expand the commercial opportunities and support chronic kidney disease patient across the treatment continuum (from preventing kidney damage, to chronic kidney disease treatment, to dialysis treatment to transplant).
The broker was pleased to see that management remains "extremely confident" in the long term growth potential of these therapies. It commented:
Management remains "extremely confident" in its ability to drive long-term sustainable growth by better leveraging a much more diversified product portfolio and deeper pipeline. Notably, management targets >10% revenue growth across Vifor over the medium term and reiterated profit accretion (low-to-mid teens ex-amortisation /one-off costs), including US$75m in cost synergies over the first 3 years.
In light of the above and improving plasma collections, it believes now is the time to buy. It concludes:
While plasma inventories need to be rebuilt over time, strong plasma collections, with ongoing demand across both Behring and Seqirus, coupled with Vifor's added breadth, portends strong growth and momentum.
