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The CSL Limited (ASX: CSL) the stock price fell with the market in 2022.
Since the beginning of the year, the shares of the biotherapy giant have lost 8% of their value.
In light of this, investors may wonder if the CSL stock price is currently trading at an attractive enough level to start an investment.
Is the CSL stock price in the buy zone?
According to a note from Citi, its analysts believe CSL’s shares are highly valued at current levels.
The rating reveals that the broker maintained its buy rating but slightly reduced its price target to $330.00.
This implies a 22% upside potential for investors over the next 12 months.
What did the broker say?
Citi took another look at the plasma industry and was pleased with what they saw.
This includes strong underlying demand for plasma products and much improved plasma collection conditions. In light of the latter, the broker believes the market will shift from its focus on collections, which has weighed on CSL’s stock price, and focus more on demand.
Citi analysts explained:
Recently, several data points have influenced our view of the plasma sector. CMS data in the United States indicates a continued increase in prices for immunoglobulin products. This is in line with our expectations as donor fees continue to remain high.
Underlying demand for plasma products remains strong, but supply is limited due to low plasma collection volumes. With plasma collections now back to pre-pandemic levels, we expect the market to focus on the strong underlying demand for plasma products.
The broker expects the above to “drive CSL stock price strength.” Which could bode well for investors in the near future.