After a horror month should you buy the dip on CSL shares?

A leading expert delivers his verdict on CSL shares.

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CSL Ltd (ASX: CSL) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $210.93. As we eye the approaching Thursday lunch hour, shares are swapping hands for $206.84 apiece, down 1.9%.

For some context, the ASX 200 is down 0.4% at this same time.

This sees CSL shares down a sharp 23.8% since market close on 18 August, compared to the 1.8% loss posted by the benchmark index over this same time.

The majority of those losses were delivered on 19 August, with the stock closing down 16.9% on the day.

That was the day CSL reported its full-year FY 2025 results.

And, in a frustrating development for "buy the dip" investors, the selling hasn't stopped there.

At the current share price, CSL stock is down another 8.3% since the closing bell sounded on 19 August.

So, do ASX investors have it right in continuing to sell down the Aussie biotechnology giant?

CSL shares: Buy, hold, or sell?

Bell Potter Securities' Christopher Watt recent ran his slide rule over the biotech company (courtesy of The Bull).

Commenting on the recent sell off in CSL shares he said, "The shares have fallen from $271.32 on August 18 to trade at $209.23 on September 4."

As for what the company reported in August, he said:

The biotechnology giant has outlined profit guidance of between US$3.45 billion and US$3.55 billion in fiscal year 2026, up between 7% and 10% in constant currency, alongside a A$750 million buy-back.

Watt isn't ready to pull the buy trigger just yet, but he doesn't think investors should be selling either.

Watt, who has a hold recommendation on CSL, concluded:

With a planned demerger of its vaccine division Seqirus by the end of fiscal year 2026, the business remains strategically sound. At these levels, holding CSL Limited shares is a prudent choice.

Indeed, the consensus analyst forecast on CommSec doesn't have a single analyst with a sell recommendation on CSL shares. Instead, there are 12 strong buys, three moderate buys, and five hold recommendations.

What else did CSL report for FY 2025?

Atop revealing its FY 2026 profit guidance and announcing the intended demerger of its Seqirus segment, one of the world's largest influenza vaccine businesses, into a separate ASX-listed entity, as Watt mentioned above, CSL reported some solid financial metrics for FY 2025.

Highlights included a 5% year-on-year increase in revenue to US$15.6 billion. And 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) increased 14% year-on-year to US$3.3 billion.

With today's intraday slide factored in, CSL shares are down 31% since this time last year.

Motley Fool contributor Bernd Struben 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. 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.

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