Should you buy CSL shares before 2026?

CSL shares have suffered brutal sell-offs this year.

Key points
  • CSL shares have dropped significantly in 2025, reaching a seven-year low, due to restructuring and downgraded growth prospects.
  • The company’s core business is robust, with ongoing global demand and entering a key investment phase that could boost growth.
  • Analysts are optimistic, with a projected 55.55% upside and a target price nearing $274, viewing current share prices as undervalued.

CSL Ltd (ASX: CSL) shares ended 0.7% higher at the close of the ASX on Monday afternoon, to $176.31 a piece. Over the past 6 months the shares have shed 26.78% of their value and they're now trading 37.3% lower than the beginning of 2025.

It's no secret that CSL shares have been through the ringer this year. The Australian biotech company's shares suffered a brutal sell-off in mid-August. This followed its FY25 results and surprise restructure announcement and news of a strategic demerger sparked investor panic. 

As a result, the CSL share price tanked, losing around a fifth of its value within just one week. At the time, analysts said the investor reaction was way overdone and unwarranted but the confidence dip only continued.

Fast forward to just two and a half months later and the company's share price dropped another 19.2% to a seven-year low of $170.77 in late-October. This happened when it downgraded its FY26 revenue and profit growth guidance. 

CSL management originally forecast revenue growth of 4-5% and net profit after tax before amortisation (NPATA) growth of 7-10% for FY26. But in October revenue guidance was downgraded to 2-3% and NPATA growth guidance to 4-7%. 

CSL also said its planned demerger of its Seqirus business will be pushed back.

A woman scratches her head in dismay as she looks at a chaotic scene at a data centre.

Image source: Getty Images

So, should you buy CSL shares before the end of the year?

CSL has faced a number of headwinds this year, and its share price has suffered several sharp plunges. But I think we could be beginning to see green shoots of recovery.

But CSL's core business remains robust and demand for its products continues to grow globally. The company is also entering a key investment phase which could help boost its financials and I'd expect investor confidence to follow suit.

I think that at the current trading price of just $176.31, which is close to its seven-year low, investors have the opportunity to buy the biotech company's shares at a rare discount.

What do the experts think?

Analysts are optimistic that the shares are getting ready to rocket higher. Data shows that 13 out of 18 analysts have a buy or strong buy rating on CSL shares. The maximum target price is $274.26 a piece. At the time of writing this implies the shares could storm 55.55% higher in 2026. 

The team at UBS think that CSL shares are materially undervalued at current levels. The broker recently put a buy rating and a $275.00 price target on them. 

Motley Fool contributor Samantha Menzies 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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