Why beaten down CSL shares now offer ‘long-term appeal’

CSL Ltd (ASX: CSL) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $140.31. During the Wednesday lunch hour, shares are changing hands for $143.10 apiece, up 2.0%.

For some context, the ASX 200 is up 2.5% at this same time amid renewed hopes of a deescalation in the Iran war.

Despite today’s welcome boost, however, CSL shares remain down a sharp 41.8% since this time last year. Those losses will have only been modestly eased by the two unfranked dividends the company paid out over the past year.

CSL stock trades on a 3.0% unfranked trailing dividend yield.

Looking ahead, however, Morgans Financial’s Mitch Belichovski expects “diminishing headwinds” for the ASX 200 healthcare share (courtesy of The Bull).

CSL shares: buy, hold or sell?

“This biotechnology giant has a strong research and development pipeline and a successful track record in launching new products,” Belichovski said.

“Its first half result in fiscal year 2026 was softer than expected, with net profit after tax and amortisation declining 7%,” he noted.

Explaining his hold recommendation on CSL shares, Belichovski concluded:

However, the company’s outlook appears supported through a combination of cost-outs, marketing initiatives and diminishing headwinds, which are all reinforced by the board’s urgency around operational delivery.

This provides long term appeal for investors already holding the stock.

What’s the latest from the ASX 200 biotech stock?

CSL reported its half year results (H1 FY 2026) on 11 February.

Atop the 7% year on year decline in NPATA Belichovski mentioned above, the company also suffered a 4% decline in revenue on a constant currency basis to US$8.3 billion.

The company said it had been negatively impacted by a number of factors over the six months including government policy changes, one-off restructuring costs and impairments.

On the positive side, CSL reported a 3% year-on-year increase in cash flow from operations to US$1.3 billion. And management increased the share buyback program from US$500 million to US$750 million.

“We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward,” CSL’s chief financial officer Ken Lim said of the half year results.

Looking ahead, Lim said, “In the second half we have an ambitious growth plan, driven by immunoglobulin, albumin and our newly launched products.”

Pleasingly, CSL reaffirmed its full year FY 2026 guidance for 2% to 3% revenue growth and 4% to 7% NPATA growth.

CSL shares closed down 4.6% on the day of the results release.

The post Why beaten down CSL shares now offer ‘long-term appeal’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.