CSL Ltd (ASX: CSL) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed on Friday trading for $234.34. In late morning trade on Monday, shares are changing hands for $238.05 apiece, up 1.6%.
For some context, the ASX 200 is up 0.2% at this same time.
Today's outperformance will come as welcome news to stockholders. CSL shares are still down 19.0% since this time last year, trailing the 10.1% 12-month gains posted by the ASX 200.
But a growing number of fund managers expect the biotech giant to have a much stronger year ahead.
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Why CSL shares could outpace the benchmark into 2026
"It's rare to find quality businesses that are cheap. But occasionally, they are," said Chris Haynes, head of Australian equities at Equity Trustees Asset Management (quoted by The Australian Financial Review).
"For us, quality is defined by strong management, a favourable industry structure, and a sustainable competitive advantage," Haynes said.
And he pointed to ASX healthcare stocks as ones that investors would do well to look into for the year ahead.
"This sector currently offers many quality businesses at reasonable price," he noted.
According to Haynes:
We currently see the healthcare sector as most promising. Uncertainty around 'most favoured nation' drug pricing and tariffs in the US has caused the sector to trade at levels not seen in quite some time, both locally and globally.
Once there's more clarity on these issues, we expect some company shares to begin recovering.
Among the ASX healthcare stocks that look appealing, Haynes said CSL shares "are trading at attractive prices relative to the broader market and historical valuations".
Also bullish on the ASX 200 biotech share
Medallion Financial Group's Stuart Bromley also has a bullish outlook on CSL shares (courtesy of The Bull).
"This Australian biotechnology company is the world's most prominent plasma collector," said Bromley, who has a buy recommendation on CSL stock.
"CSL Seqirus is one of the world's largest influenza vaccine companies. The company also offers renal disease treatment after acquiring Vifor Pharma in 2022," he noted.
As for CSL's recent financial performance, Bromley said, "The company lifted net profit after tax by 7% at constant currency in the first half of fiscal year 2025. The dividend increased by 16% in Australian currency."
At the current price, CSL shares trade on a 1.8% unfranked trailing dividend yield.
And with shares down 19% over the last year, Bromley believes the stock is bargain-priced.
"In our view, the company is trading at a significant discount and provides an opportunity to enter an Australian powerhouse at an attractive valuation," he concluded.
