CSL Ltd (ASX: CSL) shares have climbed higher again in Tuesday morning trade.
At the time of writing the biotech stock is up around 0.5% and changing hands at $106.01. At one point this morning the shares were trading as high as $106.32 a piece.
The latest increase is great news for investors and continues a run of gains made over the past couple of weeks. CSL shares have now rebounded around 15% since dropping to a 10-year low of just $92.24 in early-June.
While there's still a long way to go after a series of sharp sell-offs this year, it's a start in the right direction.
The shares are now down around 39% for the year-to-date and 56% lower than 12 months ago.
Image source: Getty Images
Why are CSL shares climbing higher in June?
It looks like investor sentiment is finally shifting.
After dropping around 23% throughout the month of May, and further again earlier this month, it looks like bargain-hunting investors are jumping and buying the shares while they trade for cheap.
After dropping 39% so far in 2026, it looks like even nervous investors may now consider that the bad news and earnings outlook downgrade is priced in.
I think the increase over the past couple of weeks shows that investors are now looking forward to whether management can improve operations, and if so, what CSL's FY27 and FY28 earnings might look like.
What do analysts tip for the biotech stock now?
Analysts are divided about the outlook for CSL shares, although the majority agree there should be some element of upside ahead.
Market Index data shows most brokers (five out of seven) have a hold rating on CSL shares. However, the $137.04 target price implies a potential 31% upside at the time of writing.
TradingView data shows something similar. Out of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock.
The average $138.89 target price implies a potential 32% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 2% to $103.02, while others forecast CSL to jump around 88% higher to $196.76, at the time of writing.
UBS recently renewed its buy rating on CSL shares with a 12-month price target of $158. The broker said that it is feeling more positive about the company's outlook, and believes that this year could mark the low point for CSL's earnings.
My take on CSL shares
I think CSL shares will bounce back eventually, but I consider it a longer-term play rather than a short-term rebound.
After all, CSL's growth initiatives do seem to be working.
The company is also operating in a high-growth market. CSL's blood plasma division dominates the market for rare blood disorders and immunoglobulin products.
And 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.
I think that once CSL is able to turn around its financials, investor confidence will follow.
