The CSL Ltd (ASX: CSL) share price has had a rough time of it in the last several months. As the chart below shows, the ASX biotech share has fallen 22% from 23 August 2024. The business had an opportunity to reinvigorate the market with the recent Macquarie Group Ltd (ASX: MQG) investment conference.
A key factor for investors in the biotech giant is its exposure to changes in the US healthcare (and economic) landscape. A significant part of CSL's operations and earnings comes from the country.
Let's have a look at what the company reported and Macquarie's view on CSL shares.
Macquarie conference insights
In a note to clients, Macquarie noted that CSL maintained its FY25 underlying net profit (NPATA) guidance of growth of between 10% to 13% in constant foreign exchange terms, which Macquarie described as a "positive".
However, the broker pointed out CSL did not mention reaching a return on invested capital (ROIC) target of 20% by FY30, which was discussed last year.
Macquarie said CSL faces "multiple potential headwinds from the Trump administration", but importantly, CSL does not expect its plasma products to face US tariffs as it believes value is created at collection and most fractionation occurs in the US.
The broker noted that CSL is reviewing its supply chain options to see if it faces tariffs, but adjustments will take time and involve a capital cost.
CSL did highlight the productivity benefits of the roll-out of the new Rika platform and other efficiency strategies, such as more development in focus research and development.
Macquarie noted that the CSL share price had a negative reaction relative to the S&P/ASX 300 Index (ASX: XKO) on presentation day, with a negative return of 2.4%.
Broker rating on CSL shares
Macquarie currently has an outperform rating on CSL, which essentially means it's a buy rating.
The broker has a price target of $360.30 on the business. A price target is where the broker sees the CSL share price trading in 12 months from the time of the investment call.
Therefore, Macquarie is currently suggesting that the ASX biotech share could rise 50% over the next year, which would be an impressive outcome if that happens.
