CSL shares jump 93%: Is the ASX biotech stock a buy, sell or hold for October?

CSL Ltd (ASX: CSL) shares have climbed higher into the green in Tuesday lunchtime trade.

At the time of writing, the ASX biotech stock is up around 1% and is trading for $178.34 a piece.

Today’s increase means CSL shares have now jumped 93% from a 10-year low, recorded in June. The shares have also recouped losses shed this year, and are now up around 4% for the year to date. CSL shares are currently trading 13% lower than this time last year.

What drove the CSL share price rebound?

It looks like a combination of factors drove a renewal of investor confidence.

The company has faced several strong headwinds over the past 18 months, including a general investor rotation away from ASX healthcare shares, a full-year guidance downgrade earlier in the year, and news that the company expects an additional non-cash pre-tax impairment of around $5 million in FY26 and FY27.

But it looks like investors realised that the sell-off was way overdone, and by June the shares were trading significantly below fair value.

CSL’s final FY26 result in mid-August helped drive confidence higher again. The company reported total revenue of US$15.8 billion and NPAT of US$2.6 billion, which came in way ahead of guidance. 

Management described FY26 as a ‘reset year’, and said that in FY27 it expects a return to growth.

And all this has happened while the Australian healthcare sector stages a significant recovery, with investors becoming interested in the sector once again.

And why are the shares climbing higher again today?

Just yesterday, the company announced it has entered into an exclusive deal with Alentis Therapeutics for lixudebart, a treatment targeting rare kidney and liver conditions.

The company plans to expand clinical trials to cover other rare diseases such as focal segmental glomerulosclerosis (FSGS) and primary sclerosing cholangitis (PSC), supporting the growth of CSL’s nephrology portfolio.

CSL is expected to make an initial upfront payment of US$355 million to Alentis Therapeutics. It will also make additional commercial milestone payments of up to US$1.2 billion depending on commercial success.

The agreement is valued at up to US$1.6 billion in total.

Is the ASX biotech stock a buy, sell, or hold for October?

It looks like the company is well positioned for future growth. And the experts are bullish that CSL shares can keep climbing higher, too.

Market Index data shows that the majority of brokers have a buy rating on CSL shares. But after the strong rebound over the past couple of months, the average $159.86 target price now implies a downside of around 10% from the current trading level.

Analysts on TradingView are also bullish. Again the majority (11 out of 19) have a buy or strong buy rating on the shares. The average $185.96 target price implies a potential 4% upside, at the time of writing. Some think the shares have the potential to jump another 22% to $218.30 within the next 12 months.

If analyst forecasts are correct, now could be a great time to buy the shares, ahead of the next rally.

The post CSL shares jump 93%: Is the ASX biotech stock a buy, sell or hold for October? appeared first on The Motley Fool Australia.

More reading

• Are CSL shares a buy after its big news?
• CSL unveils exclusive Alentis deal to advance rare disease treatments
• Top ASX shares to buy in October 2026
• CSL vs Pro Medicus: Which ASX healthcare share is better?
• Expert names Woodside and CSL shares as top buys today

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.