CSL Ltd (ASX: CSL) shares have climbed into the green in Thursday lunchtime trade. At the time of writing the ASX biotech shares are up around 1% and are changing hands for $176.50 each.
The shares have now jumped about 31% over the past month alone after rebounding strongly in August following the company's FY26 results announcement.
CSL reported total revenue of US$15.8 billion and NPAT of US$2.6 billion. It also recorded a net loss after tax of US$2.6 billion for FY26, coming from pre-tax impairments and restructuring costs. The result came in way ahead of guidance and CSL management described FY26 as a 'reset year', with FY27 marking a return to growth.
A sectorwide rotation back into ASX healthcare shares has also helped boost CSL shares higher recently.
I think there is a lot of potential for the company to grow over the next few years. CSL is operating in a high-growth market, and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products.
Analysts sentiment has also turned more positive. Market Index data shows the majority have a buy rating on CSL shares. But after the latest rally, the $159.86 average target price now implies a potential 8% downside ahead, at the time of writing.
The past month has seen CSL go from strength to strength, and the share price rebound is impressive.
But there is another ASX biotech stock I'd buy instead.
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The ASX biotech stock I have my eye on right now
Telix Pharmaceuticals Ltd (ASX: TLX) is a little different from CSL. The two businesses are major Australian biotech companies but have a vastly different focus, scale, and market position.
CSL focuses on plasma therapies while Telix focuses on radiopharmaceuticals. In terms of size, CSL is a global industry giant with multi-billion-dollar revenues but Telix is a mid-size company in the midst of strong growth.
It's Telix's growth opportunities which I find most appealing.
Its shares are in the spotlight this week after the company announced that its brain cancer imaging drug, Pixclara, has received approval from the US FDA. This makes it the first FET-PET imaging drug cleared for use in glioma and expands Telix's precision medicine portfolio.
Telix says Pixclara is already the subject of a Phase 3 trial for diagnosis in additional brain conditions, with potential expansion to brain metastases.
The company said it plans to target market leadership in both imaging and treatment for several high-need cancers.
Telix's broader pipeline includes late-stage assets in prostate, kidney, and glioblastoma cancers, with a focus on bringing further precision medicine products to both existing and new markets worldwide.
The update came off the back of several other good-news announcements out of Telix so far this year, including an application for key regulatory approval in Europe, several announcements about its growth and development plans, news that FDA had accepted its NDA for TLX101-Px (Pixclara®), and the announcement of a major collaboration with US-based biotech company Regeneron Pharmaceuticals.
Telix also posted an impressive first-half FY26 result last month. Highlights include a 22% increase in revenue to US$477 million, and a strong gross margin improvement to 55%. Adjusted EBITDA also surged 146% year-on-year to US$52 million.
What do brokers tip next for Telix Pharmaceuticals shares?
I think there is plenty more room for Telix shares to run higher this year. And it looks like brokers agree too.
TradingView data shows that 14 out of 16 analysts have a buy/strong buy rating on the shares. The average $25.48 target price implies a potential 45% upside, while the maximum $30.99 target price suggests the stock could climb 76%, at the time of writing.
