CSL Ltd (ASX: CSL) shares are tumbling again today as investors continue selling up their interest in the Australian biotech company.
At the time of writing, the shares are down 4.6% to $130.70 a piece.
Today's decline means the shares are now down 24% for the year to date and 45% lower than a year ago.
Analysts have widely considered the biotech company's shares oversold and undervalued for some time now, and they're tipping a significant upside ahead.
TradingView data shows that 12 out of 18 analysts have a buy or strong buy rating on the shares. Another six have a hold rating.
The average target price is $200.35, which implies a potential 53% upside at the time of writing.
But others are even more bullish and expect the shares could jump 104% to $267.79 in the next 12 months.
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Here's why CSL shares could surpass $265
There are a few reasons why CSL shares are tipped to fly higher this year. From easing headwinds to robust demand, CSL could write a great growth story in 2026.
CSL has posted some uninspiring financial results over the past 18 months. It also heavily downgraded its FY26 revenue and growth profit guidance in late 2025. The biotech giant lowered its FY26 NPATA growth forecast to 4% to 7% (down from 7% to 10% previously), citing falling US vaccine demand and pricing pressures.
The company has announced a surprise restructure and a shock CEO exit over the past year, spooking investors and sending the company's share price south.
But it looks like many of these headwinds are now easing, and the downward pressure on CSL shares could quickly rebound.
At the core of CSL's business is its plasma-derived medicine division. This includes immunoglobulins, albumin, and clotting factors.
The company's blood plasma division dominates the market for rare blood disorders and immunoglobulin products.
Global demand for plasma therapies is strong and growing, too. There is recurring demand and limited competition, which makes CSL well-placed to carve out a significant portion of the market.
Recent reports indicate that the blood plasma derivatives market was valued at $52.16 billion in 2025. By 2033, it is expected to explode to $104.30 billion.
Not only is demand for its productions booming, CSL is also entering a key investment phase, which could help boost its financials. I'd expect investor confidence will follow suit.
Why hasn't CSL already started gaining momentum?
It's a good question, and one that is two-fold.
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 investors have lost confidence in its pipeline and expansion plans.
At the same time, the Australian sharemarket has seen a broad market rotation away from healthcare-related stocks in 2026, in favour of defensive assets.
Ultimately, it looks like CSL's growth trajectory is on the right path. And as soon as investors regain some confidence and jump on board, the share price could quickly be on its way to surpass the $265 mark in 2026.
