UPDATE: Shares of CSL Ltd (ASX: CSL) have dipped 0.11% today, closing at $183.44. This follows a tumultuous few months for the biotech giant, raising urgent questions: have CSL shares finally hit rock bottom?
CSL’s stock suffered a dramatic sell-off in mid-August after the company announced a surprise restructure and strategic demerger during its FY25 results. Investors reacted swiftly, sending the share price down nearly 20% in just one week. Analysts at the time deemed the panic overdone, but further declines ensued.
In late-October, CSL shares plummeted an additional 19.2%, hitting a seven-year low. This downturn followed a troubling downgrade in the company’s FY26 revenue and profit growth guidance, which was revised from a forecast of 4-5% revenue growth to just 2-3%. Net profit after tax before amortisation (NPATA) expectations also fell from 7-10% to 4-7%. Additionally, the planned demerger of its Seqirus business has been delayed.
Despite these headwinds, signs of recovery may be emerging. Since the latest price drop, CSL shares have rebounded by over 7%. Although today’s decline is modest, investor sentiment appears to be shifting. Notably, CSL shares were the fifth most-traded stock by CommSec clients last week, with over half of the transactions being purchases.
Analysts are cautiously optimistic, too. Out of 18 analysts surveyed, one has issued a buy or strong buy rating for CSL shares, while four maintain a hold rating. The average target price stands at $242.20, with some projections reaching as high as $278.05 in the next twelve months—signifying a potential upside of 51.57% for investors.
Leading financial institutions like Macquarie and UBS have also issued buy ratings, suggesting a 12-month price target of $275.20 and $275 respectively, indicating a possible 50% gain from current levels. The team at Red Leaf Securities has identified CSL as an ASX share to buy this week, citing it as oversold.
As the situation develops, potential investors should evaluate their options carefully. Experts warn that CSL may not be the best buy at this moment. Financial analyst Scott Phillips recently highlighted five stocks he believes are currently better investments, suggesting a cautious approach to CSL shares.
With market trends shifting and investor interest reigniting, all eyes will remain on CSL as it navigates these challenging waters. The coming weeks will be critical to determining whether the biotech firm can truly turn the tide.
Stay tuned for further updates on this developing story.
