CSL Ltd (ASX: CSL) shares have staged an impressive recovery over the past three months, aided by a sharp jump this week following the company's full-year results announcement.
The shares are still more than 25% down over a 12-month period however, begging the question, is there still more recovery to come?
It's fair to say brokers are split on the question, with those surveyed having a wide range of views on where the shares will go over the next 12 months.
First let's have a quick look at what CSL announced this week.
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Steady results in reset year
The blood products company posted total revenue of US$15.8 billion, down 1%, and underlying net profit of US$3.1 billion, down 2%.
After significant one off costs and write downs were included, the company made a net loss of US$2.6 billion.
Interim Chief Executive Officer Gordon Naylor called FY26 a "reset" year for the company.
On the outlook, the company said it expected underlying net profit to grow by about 5% in FY27.
Wide range of views on CSL Shares
Among the brokers, UBS has the most bullish share price target for CSL at $181, compared to $163.51 late on Wednesday.
The broker said:
CSL has endured a challenging period that required significant restructuring to reduce costs and address the underperforming Vifor division. While more work remains, improving trends in the core plasma business suggest the worst is behind the group and that CSL is on track to return to at least market level growth. The separation of Seqirus is now complete, providing the incoming CEO with additional strategic flexibility.
Morgan Stanley also believes the price will appreciate, with a $172 price target.
They said:
On balance, we see the FY26 result and FY27 guidance as highlighting incremental improvement within CSL Behring, the key driver of group earnings growth over the medium to longer term. Our forecasts imply solid underlying NPATA/NPAT growth, supplemented by an ongoing buyback program.
Meanwhile, Bell Potter has a hold recommendation on CSL, with a price target of $150.
They said:
While the result today suggests the worst (by way of earnings declines) is in the rear-view for CSL, we find it difficult to justify a greater premium than is now being attributed relative to global biopharma peers.
And most bearish on CSL is Macquarie, which has a neutral rating and a price target of just $133.
They said:
Despite signs of stabilisation, we see ongoing uncertainty across core business segments (immunoglobulin, albumin) and medium-term competitive risks.
