The CSL Limited (ASX: CSL) share price is defying the market selloff and pushing higher on Thursday.
In afternoon trade, the biotherapeutics giant's shares are up almost 1% to $286.37.
This compares favourably to a 1.4% decline by the ASX 200 index.
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Why is the CSL share price outperforming?
Investors have been buying CSL's shares despite there being no news out of the company.
However, when market volatility is high and the global economic outlook becomes uncertain, companies with defensive earnings are often in favour with investors.
CSL ticks a lot of boxes here. Because it develops life-saving therapies, they are in demand with end-users whatever is happening in the economy.
In addition, plasma is a key ingredient in the company's therapies. This means that it relies heavily on plasma donations at its collection centres.
When the global economy is booming, there is less need for people to donate plasma. This can lead to CSL having to increase its financial reward for donations. Whereas when there's an economic downturn, there are more people willing to donate and collection costs tend to reduce accordingly.
The team at Citi is likely to approve of anyone buying CSL shares today. It currently has a buy rating and $350.00 price target on the company's shares. This implies potential upside of 22% from current levels.
