CSL Ltd (ASX: CSL) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $210.27. In late morning trade on Tuesday, shares are swapping hands for $208.23 apiece, down 1.0%.
This sees CSL shares down 23.1% since market close on 18 August.
As you're likely aware, the stock took a big hit on 19 August, closing down 16.9% after CSL reported its full-year FY 2025 results.
That came despite CSL reporting on a pretty solid year.
For example, revenue of US$15.6 billion was up 5% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) were up 11% to US$5.3 billion.
On the bottom line, underlying net profit after tax and amortisation (NPATA) of US$3.3 billion was up 14% from FY 2024.
But management's unexpected announcement of their intent to spin off CSL's Seqirus segment, one of the world's largest influenza vaccine businesses, into a separate and "substantial ASX-listed entity" looks to have spooked the market.
Here's why the market may have gotten it wrong.
Image source: Getty Images
Tailwinds brewing for CSL shares
Family Financial Solutions' Jabin Hallihan recently ran his slide rule over CSL stock (courtesy of The Bull).
"CSL is a global biotechnology company," he said. "CSL shares plunged following recent fiscal year 2025 results, driven by weaker vaccine margins and cautious plasma cost guidance."
As for the company's divestment intentions, Hallihan added, "CSL also announced plans to divest its influenza vaccines business into a separate ASX-listed entity before the end of financial year 2026."
But Hallihan doesn't appear concerned that this will crimp current shareholder value.
Quite the opposite, he cited three reasons the stock could soar in the coming year.
According to Hallihan, who has a buy recommendation on CSL shares:
The company continues to grow plasma volumes and expand its product pipeline. CSL reported solid revenue growth and maintains a strong balance sheet. Our 12-month analyst valuation is $291.31 as the long-term outlook remains intact.
That's 39.9% above the current share price.
Also sounding a bullish note on the ASX 200 biotech stock
Morgans' Damien Nguyen also offered a positive outlook on CSL shares in The Bull this week.
"CSL remains a dominant player in the global biotechnology sector," said Nguyen, who has a buy recommendation on CSL stock.
"The shares nosedived after CSL delivered its full year results on August 19," Nguyen said, addressing the recent share price carnage. "Yet revenue of US$15.6 billion in full year 2025 was up 5% on the prior corresponding period. Reported net profit after tax of $US3 billion was up 17% on a constant currency basis."
Connecting the dots on CSL shares, Nguyen concluded:
CSL continues to expand its product portfolio and global reach. Operational improvements and innovation across its divisions support a positive outlook in the long term.
Recent share price weakness provides a compelling opportunity for long term investors, in our view.
