Down 54%: What should I do with my CSL shares now?

CSL Ltd (ASX: CSL) shares ended in the red again at the close of the ASX on Tuesday afternoon.

The shares ended around 1% lower for the day, at $112.04 a piece and they’re now around 4% lower over the past week. It looks like investor sentiment has started softening again.

The shares began rebounding through the first three weeks of June, and are still around 19% higher than an all-time low of just $92.24 earlier in the month.

But CSL shares are still 35% lower year to date and 54% lower than this time last year.

The question now is, if you own the ASX healthcare shares, what should you do with them?

Is it time to buy more in the dip? Hold tight until we know what will happen next? Or sell up before the shares drop to a new low?

Here’s what the experts think.

Are CSL shares a buy, sell or hold?

Analysts are divided on the outlook for CSL shares, although the majority agree there should be some 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 22% upside at the time of writing.

TradingView data also shows that, of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock. 

The average $138.48 target price implies a potential 25% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 8% to $103.49, while others forecast CSL to jump around 76% higher to $197.66, at the time of writing.

UBS recently renewed its buy rating on CSL shares with a 12-month price target of $158. The broker is feeling more positive about the company’s outlook, and believes that this year could mark the low point for CSL’s earnings.

But the team at Peak Asset Management is more bearish and is one of the brokers with a sell rating on the ASX stock. 

The broker said that the biotech giant has materially downgraded its FY26 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027. It also noted that the CSL Vifor acquisition has underperformed amid government healthcare cost pressures and a higher-interest-rate environment.

Meanwhile, Ord Minnett recently confirmed its hold rating and $117 target price on CSL shares. The broker also said it believes the market is underestimating the challenges its Vifor business is facing and expects earnings to be below consensus estimates.

My view of CSL shares

I don’t think things look too good for CSL shares right now, and short-term growth appears to be limited.

Over the longer term, I think there is still potential. CSL’s growth initiatives seem to be working, and it is operating in a dominant position in a high-growth market.

I think it’s possible that if CSL can turn around its financials, investor confidence will follow. But until then, I’m holding tight. 

The post Down 54%: What should I do with my CSL shares now? 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.