The CSL Limited (ASX: CSL) share price is defying the market selloff and pushing higher on Thursday.
In afternoon trade, the biotherapeutics giantâs shares are up almost 1% to $286.37.
This compares favourably to a 1.4% decline by the ASX 200 index.
Why is the CSL share price outperforming?
Investors have been buying CSLâs 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 companyâs 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 thereâs 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 companyâs shares. This implies potential upside of 22% from current levels.
The post Why is the CSL share price smashing the ASX 200 on Thursday? appeared first on The Motley Fool Australia.
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More reading
- Hereâs how much Iâd need to invest in CSL shares to generate a $300 monthly income
- 5 ASX 200 shares that inflation can’t touch: expert
- Hereâs how I would secure monthly dividends in the 2024 financial year with these ASX stocks
- Morgans names 3 more of the best ASX shares to buy in March
- Why is the CSL share price on the slide today?
Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.
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