Is the CSL (ASX:CSL) share price in the buy zone after its update?

The CSL Limited (ASX:CSL) share price is on the move on Wednesday following the release of a presentation. Is it time to buy shares?
The post Is the CSL (ASX:CSL) share price in the buy zone after its update? appeared first on The Motley Fool Australia. –

A doctor looks unsure, indicating share price uncertainty for ASX medical companies

The CSL Limited (ASX: CSL) share price is on the move on Wednesday morning.

At the time of writing, the biotherapeutics giant’s shares are up 1.5% to $275.25.

Why is the CSL share price on the move today?

This morning the biotherapeutics company released a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) conference.

While the presentation didn’t include a trading update for the third quarter of FY 2021, it did provide more colour on its plasma collections.

Plasma is a vital part of the process in the manufacturing of many of its therapies.

Over the last 12 months plasma collections have been under pressure due to COVID-19 related headwinds such as social distancing, lower mobility, and stimulus payments. The latter has reduced the need for some donors to make donations for an extra source of income.

What is the latest?

Management acknowledged that plasma collections have been adversely impact and additional collection costs have been incurred.

However, it has been mitigating this with a comprehensive campaign to raise awareness of the opportunity and need for plasma donation. Importantly, all its centres have remained open during the pandemic after being designated as essential critical infrastructure.

CSL has also continued to expand its footprint, with 25 new centres opening in the United States in the current financial year. This brings its network to over 300 cents, with the vast majority (284) in the United States market.

Pleasingly, management isn’t resting on its laurels and intends to open a further 40 new centres in FY 2022.

Incidentally, a recent note out of Citi reveals that its analysts believe plasma collections will return to 2019 levels in the second half of 2021. If this proves accurate, CSL will be well-positioned to benefit thanks to its expanding network.

Is the CSL share price in the buy zone?

According to the aforementioned note out of Citi from late last month, the CSL share price is good value at present.

Citi currently has a buy rating and $310.00 price target on the company’s shares.

Based on the current CSL share price, this price target implies potential upside of 12.5% over the next 12 months.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the CSL (ASX:CSL) share price in the buy zone after its update? appeared first on The Motley Fool Australia.

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