Down 28% in a year, should you buy CSL shares now?

A leading expert delivers his verdict on the outlook for CSL shares.

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Key points

  • CSL Ltd shares have edged down 0.2% today, with a significant 28.0% drop over the past year, though offering a 2.1% dividend yield.
  • The recent announcement of a Seqirus demerger introduces short-term uncertainty but aims for long-term efficiency gains.
  • Medallion Financial Group’s Philippe Bui believes CSL's global presence and innovation provide a stable investment for the long term.

CSL Ltd (ASX: CSL) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed on Friday trading for $218.50. In early afternoon trade on Monday, shares are changing hands for $218.14 apiece, down 0.2%.

For some context, the ASX 200 is down 0.1% at this same time.

Taking a step back, CSL shares are down 28.0% since this time last year. Though that doesn't include the $4.522 in unfranked dividends CSL paid out over the full year. At the current share price, that sees CSL stock trading on a trailing dividend yield of 2.1%.

With this in mind, is Australia's biggest listed healthcare stock a bargain buy today?

Should you buy CSL shares today?

Medallion Financial Group's Philippe Bui recently ran his slide rule over the ASX 200 biotech company (courtesy of The Bull).

"CSL remains one of Australia's premier global healthcare companies, combining scale, innovation and strong recurring revenue," said Bui, who has a hold recommendation on CSL shares.

"Its leadership in plasma therapies and vaccines provide defensive earnings and steady growth, supported by robust margins and a healthy balance sheet," he added.

Commenting on some of the headwinds that have dragged on the share price of late, Bui said:

CSL recently announced a restructuring plan. The planned demerger of the Seqirus influenza vaccines business introduced short term uncertainty, but the strategy should streamline operations and unlock long term efficiency gains.

That unexpected restructuring plan was revealed when the company reported on its FY 2025 results on 19 August.

Management announced their intention to demerge CSL's Seqirus segment – one of the world's largest influenza vaccine businesses – into a separate ASX-listed company. The company said it plans to complete the Seqirus demerger before the end of FY 2026.

CSL shares closed down 16.9% on the day of the announcement.

And, according to Bui, that makes the ASX stock one for long-term investors to hold onto.

He said:

Recently trading at the lowest levels in years, CSL offers stability rather than outsized upside at current levels. Long term investors should maintain exposure for its quality, resilience and global footprint.

What's the latest from the ASX 200 healthcare stock?

The latest news deemed price sensitive to CSL shares was released on 16 September.

That's when the company announced it had entered into an agreement with Netherlands-based biotech business VarmX. The two companies will work together to develop a new treatment to restore blood coagulation in patients taking an FXa inhibitor.

"This new treatment will potentially address a clear and significant unmet medical need in a well-defined and growing patient population," CSL's CEO Paul McKenzie said on the day.

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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