Should I buy CSL shares in June?

CSL Ltd (ASX: CSL) shares are down again during Thursday lunchtime trade.

At the time of writing, the shares are down around 1% to $98.03 a piece.

May wasn’t a good month for the CSL share price. Today’s slump means the biotech stock has now fallen around 24% over the past month alone, and is just over 60% lower than a year ago.

Now the question is, have CSL shares now hit the bottom? Or will they tumble even lower in June?

What happened to CSL shares in May?

CSL shares suffered their biggest-ever one-day crash in early-May after the company lowered its FY26 outlook after interim CEO Gordon Naylor completed his 90-day review.

The company now expects FY26 revenue of around US$15.2 billion on a constant currency basis. It also expects NPATA of about US$3.1 billion, excluding restructuring costs and impairments.

The downgrade has come about following several issues. 

CSL noted that in US immunoglobulin, demand is still growing but normalisation of channel inventory is expected to cause a revenue impact of approximately US$300 million. 

In China, the company expects a US$200 million impact from a decline in the market value of albumin. 

Meanwhile a further US$150 million impact from the Middle East conflict, revised HEMGENIX growth, and competition in iron.

Investors were spooked by the downgrade, and it highlighted that the business is facing several issues all at once. 

At the same time, there has also been a broad market rotation away from healthcare-related stocks in 2026. 

ASX healthcare shares have lagged behind most other sectors on the index so far this year as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. 

Should I buy the shares in June?

The good news is that CSL has said its growth initiatives are working. However the company added that the financial benefits will take longer than previously expected.

At the time of writing, analysts consensus is for an upside ahead of the next 12 months, but it’s clear that investors can’t expect the shares to return to previous levels.

I can’t see that the increase will start filtering through as early as the next few months, so some patience is needed. In fact, I’m expecting more downside ahead before the shares start to rebound.

What is clear is that the market needs to readjust its expectations for CSL shares going forward. 

TradingView data shows that sentiment is evenly split. Nine out of 18 analysts have a buy or strong buy rating on the stock, and the other nine rate the shares as a hold.

The average $147.55 target price implies a potential 51% upside at the time of writing. 

That increase would take us back to the valuation the shares were trading at in February this year, which is a far cry from the $300-level see through 2020 to 2024.

The post Should I buy CSL shares in June? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.