I think it is fair to say that CSL Ltd (ASX: CSL) shares have been having a difficult time of late.
Due to the release of a soft half-year result and the shock exit of its CEO the day before, the biotech giant's shares have crashed to multi-year lows.
Is this a buying opportunity for investors? Let's see what Bell Potter is saying about the struggling blue chip.
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What is the broker saying?
Bell Potter was not overly impressed with CSL's performance during the first half, highlighting that the key CSL Behring business weighed on its results. It said:
Key call outs from the various segments include: (1) Ig sales down -4% on pcp and 5% below VA consensus, resulting in a reduction to our full-year Ig sales growth to +3%. (2) Behring gross margin was effectively flat and guided to minimal, if any, increase [for] the full-year FY26. A return to pre-Covid GM for Behring is looking slower and more difficult with each passing result.
(3) Seqirus was a positive surprise following US market share capture and launches into Germany and France; (4) Vifor nephrology sales was a positive surprise, albeit benefited by TDAPA tailwinds lasting to Dec 2026; and (5) Iron sales continue to decline and are unlikely to turnaround in the face of active generic competition in the EU and looming competition in the US.
Are CSL shares good value yet?
According to the note, the broker thinks investors should be keeping their powder dry for the time being.
In response to the results, Bell Potter has retained its hold rating on CSL shares with a reduced price target of $175.00 (from $195.00).
Though, based on its current share price of $154.53, this implies potential upside of 13% for investors over the next 12 months.
Commenting on its hold recommendation, Bell Potter said:
The reduction to forecasts lowers our DCF valuation, while we have reduced the PE multiple from 17x to 16x considering the worsening earnings growth outlook and uncertainty around FY26 guidance. The net effect is a 10% reduction in PT to $175 from $195.
We maintain our HOLD recommendation. CSL now trades on an underlying PE of 16.5x in FY27, well below its historical average but remains above the global biopharma avg of ~15x. It faces the daunting prospect of hiring a new CEO to re-invigorate a lacklustre growth outlook in the face of headwinds on multiple fronts.
