Two broker upgrades put CSL shares back in focus

CSL is back on the radar after two broker upgrades.

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CSL Ltd (ASX: CSL) shares are having a choppy session on Tuesday.

The CSL share price climbed as high as $177 in early trade but has since given back those gains, now flat at $174.30.

This comes as the S&P/ASX 200 Index (ASX: XJO) slips a little further into the red, down 0.1% to 8,670 points at the time of writing.

Still, CSL shares have had a much better run over the past month after a tough first half of 2026.

And with two brokers upgrading the stock overnight, there's a bit more for investors to think about.

Donor donates blood in medical clinic. Beautiful European woman of 30 years sits in medical chair looking into camera and smiling.

Image source: Getty Images

Brokers are getting more positive

According to The Australian, Barrenjoey has upgraded CSL to overweight with a $180 price target.

And RBC is even more positive, upgrading the stock to outperform and lifting its price target to $213.

That would put the shares more than 20% above where they trade today.

The broader broker picture is a bit more mixed, though.

TipRanks shows 11 recent analyst ratings on CSL, with 5 buys and 6 holds. The average 12-month price target is $172.92, which is basically where the shares are trading now.

But there are still some pretty bullish targets out there.

Jarden is at $207, Morgans is at $187.71, Canaccord is at $185, Morgan Stanley is at $182, and UBS is at $181.

At the lower end, Citi has a $160 target, Bell Potter is at $150, and Macquarie is down at $133.

Why I'm interested

I'm not interested in CSL just because a couple of brokers have upgraded the stock.

What I like more is that the business looks like it could finally be getting through some of the issues that have weighed on it.

FY26 revenue came in at US$15.8 billion, down 1% in constant currency, while underlying NPATA fell 2% to US$3.1 billion.

The statutory result looked a lot worse, with large impairments and restructuring costs pushing CSL to a US$2.6 billion loss.

But there were still some positives underneath the result.

Immunoglobulin revenue rose 7% over the year, channel inventory normalisation was completed, and CSL delivered US$176 million of savings during FY26.

Management is now targeting US$400 million of savings in FY27 and US$550 million by FY28.

Would I buy CSL shares?

Yes, I would.

CSL still has a few things to sort out, particularly around Vifor, albumin, and Seqirus, so I wouldn't expect the recovery to be smooth from here.

Today's early jump and quick reversal show there could still be plenty of volatility along the way.

But that doesn't put me off.

CSL is still a business I'd be happy to own for the long term.

And at $174, I'd be happy to start with a smaller position around these levels and add to it over time.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras 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 and Macquarie Group. The Motley Fool Australia has recommended CSL and Macquarie Group. 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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