CSL Ltd (ASX: CSL) shares have uncharacteristically underperformed materially in recent times.
This trend has continued this month after the market punished the biotechnology giant for its mixed FY 2025 results.
While this is disappointing, it is rare that such a high-quality ASX share is sold off to such a degree. And history shows that if you can buy the best stocks at cheap prices, you will be rewarded in the future.
So, what could $20,000 invested in CSL shares today potentially become by the end of the decade? Let's find out.
$20,000 invested in CSL shares
CSL shares finished last week at a lowly $216.60.
This means that $20,000 would get an investor 92 units and leave them with $72.80 in change.
According to a note out of Macquarie Group Ltd (ASX: MQG) last week, its analysts have an outperform rating and $295.90 price target on its shares. It said:
Despite downgrades to earnings, we view today's price movement as an overreaction. Incorporating more conservative FY26 forecasts compared to guidance, we see the current valuation as undemanding (trading at P/E ~20x with ~10% EPS growth). Outperform.
If Macquarie is on the money with its recommendation, those 92 CSL shares would have a market value of $27,222.80 by this time next year.
2030 valuation
Despite its underperformance recently, CSL shares have still delivered a market-beating average return of 10.5% per annum over the past 10 years.
Looking beyond its short term issues, the company's longer term outlook is arguably the most positive it has been in years.
As a result, for the purpose of this article, we will assume that its shares deliver a 10% per annum return from 2026 through to 2030.
If this proves to be the case, then that $27,222.80 would grow very strongly by the end of the decade.
In fact, it would grow to be worth just under $40,000 by this time in 2030. This is approximately double the initial investment.
Should you invest?
As mentioned above, Macquarie thinks now would be a good time to invest.
And it isn't alone.
The team at Morgans responded by putting a buy rating and $293.83 price target on its shares. It said:
FY25 results were broadly in line, with double-digit underlying earnings growth, solid operating leverage and strong OCF. Behring was softer (+6%; hit by cUS$100m Medicare Part D reform), but margins gained on efficiencies (GPM +130bp, 51%; OPM +100bp, 42.2%), with Vifor showing resilience (+14%), while Seqirus was soft (-9%) on weak immunisation rates. As widely anticipated, CSL flagged a restructuring, streamlining R&D and commercial productivity, targeting US$500m pre-tax savings by YE28, but surprised with Seqirus demerger and multi-year share buyback (US$500m FY26).
While investors have taken a glass half full approach, we believe the restructuring augments, not masks the underlying business, with streamlining operations and cost savings supporting double-digit earnings growth over the medium term. We adjust FY26-27 forecasts modestly, with our PT decreasing to A$293.83. BUY.
