The CSL Limited (ASX: CSL) share price has descended in the past three trading days, but is it a buy?
CSL shares have slid 3.88% since market close on Wednesday to $288.41. For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has fallen 1.57% in the same time frame.
Let's take a look at the outlook for CSL shares.
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Is CSL a buy?
CSL is a global biotechnology company consisting of multiple business arms including CSL Behring, CSL Vifor, and Seqirus. The company has more than 300 plasma collection centres around the world.
Bell Potter analysts are optimistic about CSL amid the company's latest CSL Vifor acquisition. Bell Potter also sees the global growth in plasma volumes as a potential positive for the CSL share price. The team said:
The recently completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency.
The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.
Citi also has a "buy" rating on the CSL share price with a $340 price target. This implies a nearly 18% upside based on the current price.
As my Foolish colleague James reported on Friday, strong demand for CSL's immunoglobulins and the company's "lucrative" research and development pipeline could see the company in a strong position for growth in the long term.
CSL announced the news of a CEO succession plan last week. The company's CEO Paul Perreault is set to step down in March, with chief operating officer Dr Paul McKenzie taking over the top job. Commenting on the appointment, CSL chair Brian McNamee said:
Paul McKenzie is a patient-focused global leader with a demonstrated track record of leading complex organisations and delivering outstanding business results.
Earlier this month, CSL officially opened a brand new $900 million blood plasma processing site in Melbourne.
CSL share price snapshot
The CSL share price has climbed 5% in the past year. In the past month, it has slipped 2%.
CSL has a market capitalisation of about $139 billion.
