The CSL Ltd (ASX: CSL) share price hit a 52-week closing high of $312.15 on 23 July before turning to the downside.
Shares are down more than 6% in the past month, currently fetching $286.28 at the close on Monday.
Despite this volatility, some analysts believe there's a strong case for a recovery, with a path that could see the biotech giant's share price climb back above $300.
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Why is CSL's share price down?
The CSL share price was heavily sold after its FY24 results. Added to that, its FY25 guidance came in weaker than expected, which saw investors unload shares en masse in the following weeks.
The ASX healthcare share now expects 5–7% revenue growth this year, which could pull down to 10–13% growth in net profit, respectively.
Interesting to see investors sell down a business projecting double-digit earnings growth in the coming 12 months. However, CSL's price-to-earnings ratio (P/E) is currently more than 36 times, even with the recent price declines.
There's a good chance some of the decline relates to the mismatch in forward expectations and the relationship between P/E multiples – which capture expectations by the price paid for $1 of a company's earnings.
Investors aren't willing to pay as high a price for a dollar of the company's earnings as they were previously.
CSL back above $300?
Despite these factors, several brokers have price targets set on the CSL share price above $300 per share.
For starters, those at Bell Potter believe CSL represents an attractive buying opportunity.
The broker's optimism stems from CSL's proven track record, high-quality operations, and solid product portfolio.
The company is also set to benefit from a period of margin recovery, which, analysts say could lead to stronger earnings growth in the next few years.
Bell Potter rates the CSL shares price a buy with a valuation of $316.50, above the threshold.
Meanwhile, Macquarie is similarly bullish, retaining a buy rating on the stock with a $330 price target.
The broker points to CSL's upcoming product developments, including its garadacimab therapy, which could start contributing to revenue next year.
Macquarie also sees the company continuing to generate market share gains thanks to its product offering.
CSL also secured a deal with the United States Government to expand its inventory of the MF59 adjuvant – part of its CSL Seqirus business.
The multi-year agreement, worth US$121.4 million to CSL, will bolster the biotech giant's pandemic preparedness.
The stock is rated a buy from consensus, according to CommSec data.
Foolish takeaway
While the CSL share price has seen recent headwinds, several brokers say the company's fundamentals could see it trade above $300 apiece again.
The stock is up more than 16% in the past year.
