The CSL Ltd (ASX: CSL) share price is enjoying a welcome rebound today.
That's after shares got hammered amid the broader Trump tariff stock market sell-off over the past few trading days.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $241.88. In afternoon trade on Tuesday, shares are changing hands for $245.11 apiece, up 1.3%.
For some context, the ASX 200 is up 1.5% at this same time.
Following US President Donald Trump's tariff announcements and news of China's strong retaliatory response, the CSL share price fell 1.7% on Friday and closed down another 4.5% on Monday.
However, it's not the Trump tariffs that Sanlam Private Wealth's Remo Greco says has raised investor uncertainty about the ASX 200 biotech company. Rather it's Trump's recently appointed secretary of health and human services (courtesy of The Bull).
Fewer vaccinations could pressure the CSL share price
"This biotechnology company has been a disappointing performer in the past few years," said Greco, who has a sell recommendation on CSL.
Commenting on the headwinds hitting the CSL share price this year, Greco said:
The company posted a mixed result in the first half of fiscal year 2025. The plasma collection division CSL Behring posted a 10% increase in total revenue. But total revenue at the company's vaccine division Seqirus was down 9% due to low immunisation rates, particularly in the US.
And Greco believes Trump's choice to oversee the health and human services department could throw up further obstacles for CSL.
"The confirmation of vaccine sceptic Robert F Kennedy junior as health and human services secretary in the US Trump Administration generates uncertainty among investors," he said.
"In the absence of a clear cut catalyst for a share price recovery, we expect the stock to remain under pressure," Greco concluded.
The buy case for the ASX 200 biotech stock
Bell Potter Securities' Christopher Watt has a more optimistic view on the outlook for the CSL share price (courtesy of The Bull).
"CSL continues to offer long term growth potential, supported by strong fundamentals across its plasma, vaccines and emerging biotechnology divisions," said Watt, who has a buy recommendation on CSL.
"The company is steadily recovering from earlier margin pressures, with improving plasma collections and positive progress in its research and development pipeline," he noted.
Watt added:
CSL's global footprint, scale advantages and resilient earnings profile make it a core healthcare holding. Near term catalysts include margin recovery and innovation-driven growth.
While currency impacts and integration risks remain, the longer-term trajectory is supported by demographics and health trends.
Atop potential capital gains, CSL also holds appeal for its reliable, twice-yearly dividend payments.
At the current CSL share price, the stock trades on a 1.7% unfranked trailing dividend yield.
