CSL shares: 5 analysts encouraging investors to buy the dip and why

The largest ASX 200 healthcare share has dropped to a 6-year low since the company released its FY25 results.

| More on:
An older woman gazes over the top of her glasses with a quizzical expression as if she is considering some information.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Ltd (ASX: CSL) share price reached a new six-year low of $205.82 yesterday.

Today, the market's largest healthcare share is selling for $207.87, up 0.6%, whilst the S&P/ASX 200 Index (ASX: XJO) is up 0.8%.

CSL has lost 23% of its market value since it released its FY25 report on 19 August.

Clearly, investors are nervous.

But several experts have come to the defence of this long-standing ASX 200 blue-chip share.

Here's why they're positive on CSL shares despite their recent dive.

Should you buy the dip on CSL shares?

CSL may be a tremendous buy-the-dip opportunity today — if these experts are right…

Sell-off of CSL shares 'an overreaction'

After CSL's FY25 report, Macquarie retained its outperform rating with a 12-month price target of $295.90.

The broker said:

Despite downgrades to earnings, we view [Tuesday'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).

According to Macquarie's data, CSL shares are now trading on a forward price-to-earnings (P/E) ratio of 19.1x.

This is not only below the current market average P/E but also 2.3 standard deviations lower than the historical norm for CSL stock.

Long-term outlook intact, says expert

Jabin Hallihan from Family Financial Solutions has a buy rating on CSL shares with a price target of $291.31.

The analyst said (courtesy The Bull):

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.

Morgans says investors are taking 'a glass half full approach'

Following CSL's report, Morgans has a buy rating on this ASX 200 healthcare stock with a trimmed price target of $293.83.

In a new note, the broker commented:

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.

Stock is 'bruised not broken': broker

UBS said the market's reaction to CSL's FY25 report reflected concerns over Behring's disappointing performance and the company's strong focus on cost-cutting.

The broker said this "created an overreaction to a modest compositional change in CSL's 3-year EPS growth".

UBS has a 12-month share price target of $300 on CSL shares.

CSL shares 'a potential buying opportunity'

E&P said it was disappointed with CSL's FY25 report but retained a positive rating with a lowered price target of $294.21.  

The broker commented:

The key question is whether Behring's weak 2H25 signals structural pressure or a temporary setback.

Management insists it's the latter, although medium-term Ig growth expectations have effectively eased to mid-to-high single digits (still respectable).

On balance, we see the sell-off as a potential buying opportunity.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

man with dog on his lap looking at his phone in his home.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Two workers at an oil rig discuss operations.
Broker Notes

Should you buy Santos, Beach Energy or Woodside shares? Here's Macquarie's top pick

Macquarie has released its new share price expectations for Santos, Beach Energy and Woodside shares.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

person holding hat
Broker Notes

3 ASX 200 large-cap shares just re-rated by analysts

We reveal the latest views on an ASX 200 large-cap miner, retailer, and consumer staples leader.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Down 80% in 2025: Is it time to buy this beaten down ASX stock?

Let's see what Bell Potter is saying about this stock after its heavy decline.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Broker Notes

NextDC shares jump 11% on major OpenAI deal

This data centre operator will be home to the AI giant in Australia.

Read more »

A large clear wine glass on the left of the image filled with fifty dollar notes on a timber table with a wine cellar or cabinet with bottles in the background.
Broker Notes

Macquarie names 3 top dividend-paying ASX 200 shares to buy today

Macquarie expects these three dividend paying ASX 200 shares to outperform in 2026. Let’s see why.

Read more »

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Broker Notes

Broker reveals ratings on 4 ASX 200 sector leaders

Prefer ASX 200 large-cap stocks? Here are some new ratings and price targets for four sector leaders.

Read more »