The CSL Ltd (ASX: CSL) share price has suffered heavily within the last two years. As the below chart shows, the ASX biotech share giant has now dropped by around two-thirds since August 2024.
It has been the worst-performing ASX blue-chip by far in that period and it just keeps falling.
The business may become oversold if it keeps declining, creating a rebound opportunity for contrarian investors.
Have we already reached that oversold level? I don't have a crystal ball to refer to, but we can look at what analysts think of the CSL share price and whether it's undervalued.
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CSL share price target
A price target tells investors where an analyst thinks the share price will be in 12 months after the investment rating. Of course, price targets are just analyst estimates, not guarantees of where they think the ASX biotech share will be in a year from now.
According to CMC Invest, of 11 recent expert ratings on the business, four of them are buy ratings and seven of them are hold ratings, with no sell ratings.
The average price target of those 11 analysts is $140.84 – that suggests a possible rise of 41% over the next year, which I'm sure would be a market-beating return if that came true.
The most optimistic price target is $194.90, implying a possible doubling from where it is over the next year.
However, the lowest price target for the business is $99.95. That price target implies the business may be trading at the same valuation as it is now in a year.
Let's quickly remind ourselves what the latest update was from the business.
More disappointing news
Earlier in May, the business changed its guidance for FY26 revenue to be around $15.2 billion and underlying net profit (NPATA) to be around $3.1 billion.
It outlined three areas that have had a combined impact of $650 million on revenue, including $500 million from US immunoglobulin and albumin in China.
CSL also said it expects to recognise approximately $5 billion of pre-tax impairments across FY26 and FY27, on top of what was already announced in the FY26 half-year result. Those new impairments include CSL Vifor intangible assets including the product portfolio. The impairments also include under-utilised property, plant and equipment.
In other words, despite all the bad news, the business has experienced further downgrades in confidence, which doesn't bode well for the foreseeable future.
However, in terms of the CSL share price, the average analyst now thinks the business has been oversold. We'll see if the market agrees, as time goes on.
There could be better ASX share opportunities out there with less uncertainty.
