CSL shares: 3 reasons to buy and 3 reasons to sell

CSL shares have tumbled again.

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CSL Ltd (ASX: CSL) shares finished the day 1.37% lower when the ASX closed on Thursday afternoon, at $140.23 per share.

The decline is part of a long and consistent tumble for Australian biotech stock over the past 18 months.

The share price is now 40% lower than 12 months ago, and down 18.5% for the year-to-date.

It's not all bad news out of the biotech giant though. Here are three reasons to add the shares to your portfolio, and three reasons to sell up.

A man rests his chin in his hands, pondering what is the answer?

Image source: Getty Images

3 reasons to buy CSL shares

1. It looks like headwinds are easing

CSL has faced huge headwinds over the past 18 months. From uninspiring financial results, to a revenue and growth profit guidance downgrade, a surprise restructure announcement, and even a shock CEO exit, several events have spooked investors and sent the company's share price south. But I think these headwinds are finally easing and that downward pressure on CSL shares will soon lift.

2. There's a huge demand for CSL products

At the core of its CSL's business are its plasma-derived medicines, including immunoglobulins, albumin, and clotting factors. In fact, its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. Global demand for plasma therapies is strong and growing too, and CSL is well-placed to absorb plenty of the upcoming demand.

3. Analysts tip a huge upside

Analysts are very bullish on the outlook for CSL shares. TradingView data shows 12 out of 28 analysts have a buy or strong buy rating on the stock with an upside of up to 91.6% to $286.67 per share over the next 12 months.

3 reasons to sell CSL shares

1. The market has fallen out of love with CSL shares

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years it has experienced a notable slowdown in earnings growth and a sharp share price reduction. Investors are concerned that there isn't enough concrete proof that company and share price growth can return.

2. A sector-wide rotation makes healthcare shares less attractive

ASX healthcare shares have lagged behind most other sectors on the index so far in 2026 as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. This has seen a broad rotation away from healthcare stocks like CSL while geopolitical instability continues to rattle markets. It doesn't look like this will change any time in the near future. 

3. CSL's growth outlook has slowed

CSL cut its FY26 revenue growth forecast to 2-3%, down from 4-5% previously at its AGM in October last year. It also downgraded its profit growth for FY26 to 4-7%, down from 7-10% previously. The company also revised its medium-term outlook for fiscal years 2027 and 2028, reducing expected NPAT growth from low-teens to high-single digits, well below the double-digit expansion rates it had previously experienced. 

Not only has CSL's growth outlook slowed significantly, it happened very soon after the initial guidance figures were released, suggesting that either it is (or will) face some significant headwinds or management simply overestimated growth potential. 

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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