The CSL Limited (ASX: CSL) share price is one of the best performers of the S&P/ASX 200 Index (ASX: XJO) today, currently up by 2.9% to $313.42.
In earlier trading, the ASX healthcare share hit an intraday high of $314.28 — a new 52-week best.
This is despite news today that a rival pharmaceutical company, GSK plc (NYSE: GSK) has received approval for a competing drug from the United States Food and Drug Administration.
GSK's Jesduvroq (daprodustat) is the first oral treatment for anaemia caused by chronic kidney disease (CKD) in adults receiving dialysis. It's potentially a more appealing treatment option for patients compared with CSL's Mircera and Retacrit drugs, which are administered by injection.
What's been happening with the CSL share price lately?
If we look back over the past month, the CSL share price has accelerated by 13% since 10 January. The S&P/ASX 200 Health Care Index (ASX: XHJ) has also moved up by 10.3%.
Over the same period, the ASX 200 has moved up by 5.75%.
With no price-sensitive news out of CSL in 2023, we can put this recent surge down to two things.
Firstly, there's clearly some fresh energy in the market in the new year. That momentum is especially noticeable among the big ASX blue-chip shares.
Secondly, as my colleague James reported yesterday, a few new broker notes have backed the CSL share price for growth in 2023.
Morgans added CSL to its best ideas list for February with an add rating and share price target of $312.20.
The broker reckons 2023 could be epic for the CSL share price, which has languished during the pandemic.
The broker commented:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long term forward multiple of 31.5x.
Also this week, Morgan Stanley has reiterated its overweight rating on CSL with a $354 share price target.
CSL share price snapshot
Before the COVID-19 market crash, CSL shares were trading up around $340.
During the pandemic, it fluctuated a lot, sinking beneath $250 in March 2021 and again in February 2022.
Turns out they were the best buy the dip opportunities for CSL shares. If an investor had put $50,000 into CSL at $248.50 per share 12 months ago, they'd be sitting on a handsome $13,000 capital gain (26%).
