CSL Ltd (ASX: CSL) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $181.70. As we head into the Thursday lunch hour, shares are changing hands for $182.97 apiece, up 0.7%.
For some context, the ASX 200 is down 0.2% at this same time.
Today's outperformance will come as welcome news to longer-term shareholders, who've watched the stock plunge 32.3% over the past 12 months. Losses which will have only been modestly softened by the two unfranked dividends the company paid out over this time, totalling $4.522 a share.
At the current share price, CSL shares trade on an unfranked trailing dividend yield of 2.5%.
2026, however, is shaping up better for the biotech giant.
After closing at multi-year lows on 6 January, CSL stock has gained 7.2%.
We'll look at why Morgans' Damien Nguyen believes CSL can keep outperforming in 2026 below.
But first…
Image source: Getty Images
Why did the ASX 200 biotech stock get slammed in 2025?
Looking back on 2025, we can point to two days that caused most of the carnage for stockholders.
First, on 19 August, CSL shares closed down a sharp 16.9% following the release of the company's FY 2025 results.
While a lot of the financial metrics were strong, ASX investors were decidedly less than happy with management's announcement of plans to spin off CSL's Seqirus segment – one of the world's largest influenza vaccine businesses – into a separate ASX-listed company.
That plan was later paused as CSL waits for unfavourable conditions in the United States influenza vaccine market to improve before moving forward with the demerger.
The next major hit came on 28 October. CSL shares crashed 15.9% on the day after management reduced the company's full-year FY 2026 guidance.
On 19 August, CSL had forecast that it would achieve full-year revenue growth (in constant currency) in the range of 4% to 5%. And guidance for net profit after tax before amortisation (NPATA) and excluding non-recurring restructuring costs was forecast to increase between 7% to 10%.
CSL's new full-year revenue growth guidance (in constant currency) was revealed to be in the range of 2% to 3%, down from the prior guidance of 4% to 5%.
FY 2026 guidance for growth in net profit after tax before amortisation (NPATA) and excluding non-recurring restructuring costs was cut to 4% to 7%, down from the prior range of 7% to 10%.
Why now could be an opportune time to buy CSL shares
With the ASX 200 biotech stock down 32.6% since 18 August, Morgans' Nguyen believes now could be an opportune time to snap up some shares (courtesy of The Bull).
"This biopharmaceutical giant offers a stronger risk/reward profile after a period of share price underperformance," Nguyen said, citing the first reason you might want to buy CSL shares today.
"Plasma collections are rising, costs are normalising and earnings momentum is improving," he added.
As for the third reason the ASX 200 stock could be set for a sustained rebound in 2026, Nguyen said, "Recovery at CSL Behring, a blood products division, remains on track and the influenza vaccination division Seqirus continues to provide defensive earnings."
Nguyen concluded:
The current valuation sits well below long term averages despite fundamental improvement. This sets up an attractive long term capital growth story. Catalysts for a share price re-rating include an earnings recovery and margin expansion.
