It is not often that one of the ASX's most dependable growth stars goes on sale, but that is exactly what is happening right now with CSL Ltd (ASX: CSL) shares.
The global biotech giant, which is best known for its plasma therapies and vaccines, has seen its share price fall sharply over the past year.
At around $211.87, CSL shares are down roughly 30% from their 52-week high, leaving them trading at levels not seen in years.
For long-term investors, this could be a rare opportunity to buy one of Australia's true blue-chip growth businesses at an attractive price.
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A global leader
CSL isn't just another healthcare stock, it is a world leader in plasma-derived therapies, influenza vaccines, and specialty treatments. Its operations span more than 100 countries, and its CSL Behring plasma business alone generates billions in annual revenue.
Despite recent investor nervousness around tariffs and restructuring, the company continues to perform well operationally. Plasma collection volumes are rising, margins are recovering, and its product pipeline remains full of long-term opportunities.
In addition, the planned Seqirus spin-off, expected to be completed in the next couple of years, could unlock value for shareholders by giving investors a clearer picture of each division's growth potential.
A rare opportunity
Historically, CSL has traded at a price-to-earnings ratio around 30x, reflecting its world-class track record and consistent double-digit profit growth. The current valuation near 20x represents a meaningful discount to its long-term average.
Given its dominant market position, strong balance sheet, and proven ability to grow earnings through innovation, CSL looks more like a case of short-term sentiment creating long-term opportunity.
In light of this, it isn't a surprise to see countless brokers recommending its shares as a buy. One of those is Macquarie, which has an outperform rating and $295.90 price target on its shares. Based on its current share price, this implies potential upside of approximately 40% over the next 12 months.
Its analysts 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.
Big potential long-term returns
Let's imagine that you have a $25,000 investment in CSL shares this week.
If Macquarie is on the money with its recommendation, its shares could rise 40% by this time next year. That would turn a $25,000 investment into $35,000.
Suppose its shares continue to compound by 10% annually. Over the next nine years, your initial investment could grow significantly, exceeding $80,000 by the end of this period.
Keep going another 10 years and you are looking at an investment value of approximately $215,000.
None of this is guaranteed, but it certainly does illustrate the strong potential returns investors could make on an investment in this high-quality stock while it is down in the dumps.
