Can CSL shares bounce back? 3 experts share their views after brutal 36% sell-off

Tough year, but what comes next?

| More on:
young female doctor with digital tablet looking confused.

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

Key points

  • Healthcare giant CSL has had a difficult year as operational challenges began to emerge.
  • The company's share price has tumbled significantly since earnings season in August.
  • Three fund managers have now shared their views on the group's prospects.

Investors in CSL Ltd (ASX: CSL) have endured a tough year so far in 2025.

In August, shares in the healthcare titan tumbled by more than 21% after the company released its FY25 results.

In particular, an underperformance in its core plasma therapies business known as Berhing appeared to spook investors.

And another crunching blow followed this week.

On Tuesday, CSL shares dipped by 15% after it downgraded its earnings and revenue forecasts, whilst also halting plans to spin off its vaccines division.

Overall, shares in the company have now fallen by 36% since the start of the year to $179.56 per share at Thursday's close.

This compares with a solid 10% rise for the All Ordinaries Index (ASX: XAO) across the same period.

But where do CSL shares go from here?

Below we present the views of three portfolio managers from renowned Aussie investment firms, as reported in the Financial Review.

DNR Capital sees opportunity following sell down

Chief investment officer at DNR Capital, Jamie Nicol, believes that this week's sell-off was "disproportionate".

He also appeared to see the recent dip in CSL shares as a buying opportunity.

Nicol noted that the selldown was mainly related to CSL's flu business, which he considers to be a fairly small proportion of the company's overall value.

He commented:

 There's been a big overreaction for something that's a small part of the business.

Adding that:

These are the sorts of opportunities you look for in markets.

Reportedly, CSL is one of DNR Capital's largest holdings.

Australian Ethical points to favourable valuation

Head of Australian equities at Australian Ethical Investment Ltd (ASX: AEF), Nathan Parkin, believes the fundamentals of the business remain sound, whilst recognising the market's reaction.

He commented:

It's been the second downgrade in a short period, but it doesn't really concern us in terms of the strength of Behring, the main business, which remains solid.

Meanwhile, this week's selldown appears to have created a valuation that Australian Ethical finds more favourable.

Parkin added:

Australian Ethical didn't hold CSL for more than a decade because they thought it was too expensive. Now we're seeing the flip side, the valuation looks appealing, and we think it's a good opportunity.

TenCap throws caution to the wind

However, portfolio manager at TenCap, Jun Bei Liu, appeared to take a more cautionary tone, stating:

For a growth company to start having those issues, it's really difficult to say to investors, 'trust me', when you have faltered so many times.

She added:

I wouldn't be surprised if management has to change as well when you disappoint that many times.

Motley Fool contributor Bart Bogacz 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 Australian Ethical Investment and CSL. The Motley Fool Australia has recommended Australian Ethical Investment and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

A young woman wearing a red and white striped t-shirt puts her hand to her chin and looks sideways as she wonders whether to buy ASX shares
Healthcare Shares

CSL, Sonic, and Sigma Healthcare shares: Buy, hold, or sell?

Analysts share their ratings and opinions on 3 large-cap ASX 200 healthcare stocks.

Read more »

young female doctor with digital tablet looking confused.
Healthcare Shares

Down 38% in a year, are CSL shares now a buy?

A leading investment expert delivers his verdict on CSL shares.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Healthcare Shares

This Cochlear-backed ASX aspirant will be targeting an epilepsy market worth north of $1 billion

This company is looking to raise $125 million to help commercialise its epilepsy monitoring technology.

Read more »

Surgeon looking at a monitor in an operating room.
Share Market News

Is the only way up for this ASX small-cap healthcare stock?

Bigger returns could be coming for this ambitious small-cap.

Read more »

Female scientist working in a laboratory.
Healthcare Shares

Monash IVF has named a new Managing Director to help right the ship

Monash IVF has named a new leader, but she will not start in the top job for some time.

Read more »

woman in lab coat conducting testing representing biotech
Healthcare Shares

Macquarie predicts 12% upside for this ASX 200 healthcare stock

Neuren Pharmaceuticals shares have exploded recently.

Read more »

A doctor or medical expert in COVID protection adjusts her glasses, indicating growth or strong share price movement in ASX medical, biotech and health companies
Healthcare Shares

Mesoblast shares surge 60% in a year. Have investors missed the boat?

Find out if the company is set to experience more growth.

Read more »

a close up of an adult male lion with a large mane fast asleep.
Healthcare Shares

Why this leading fundie is tipping ResMed shares for near-term gains

A top fundie expects a strong near-term rebound from ResMed shares. Let’s see why.

Read more »