What on earth’s going on with CSL shares?

If you’re feeling dizzy watching CSL Ltd (ASX: CSL) shares, you’re not alone.

This has been one of the wildest rides among ASX large caps. Sharp sell-offs. Sudden rebounds. Constant swings in sentiment tied to earnings, guidance, and pipeline concerns.

Just look at the numbers. CSL shares hit a 52-week high of $275.79 in August. Fast forward to March, and it was scraping a low of $133.35. Even now, it’s still hovering near those lows at $138.08 at the time of writing.

The biotech stock is down 20% year to date and a brutal 42% over the past 12 months.

So what’s going on and where to next?

Profit and revenue downgrades

Start with the biggest issue: growth. CSL shocked investors when it cut its FY26 revenue growth forecast to 2–3%, down from 4–5%. Profit growth was also downgraded to 4–7%, from a previous 7–10%. That’s a big shift for a company that built its reputation on consistent double-digit growth.

It didn’t stop there. Management of CSL shares also trimmed its medium-term outlook, lowering expected NPAT growth from low-teens to high-single digits for FY27 and FY28. That’s a clear signal: the high-growth era has slowed.

And perhaps more concerning, the downgrade came shortly after the original guidance was issued. That raised eyebrows. Did conditions deteriorate that quickly or were expectations simply too optimistic to begin with?

Either way, confidence took a hit.

Healthcare backdrop

Then there’s the broader market backdrop. ASX healthcare stocks, including CSL, have fallen out of favour in 2026. Investors have rotated into energy, resources, and defensive plays as geopolitical risks rise. That shift has dragged on sentiment across the sector, regardless of individual company performance.

But here’s where things get interesting. Despite the heavy sell-off, many analysts believe CSL shares are now oversold.

According to TradingView data, 12 out of 18 analysts rate the biotech stock as a buy or strong buy. The most bullish price target sits at $264.45, implying a potential upside of around 91% from current levels.

That’s a massive disconnect.

Dominant global plasma player

Why the optimism? Because the core business remains strong.

CSL dominates the global market for plasma-derived therapies, including immunoglobulins, albumin, and clotting factors. These are critical treatments for rare and chronic conditions and demand is not going away.

In fact, it’s growing. There’s strong, recurring global demand for these therapies, and competition remains limited. That gives CSL shares a powerful long-term position, even if short-term growth has slowed.

The company is also still growing, just at a more moderate pace. And over time, those growth forecasts still point to a recovery trajectory.

So what’s the market missing?

Right now, it’s all about expectations. CSL shares were priced as a high-growth machine. When that growth slowed, the valuation reset — hard.

CSL hasn’t lost its edge. But it has lost its growth premium, at least for now.

If growth stabilises and sentiment shifts, there’s clear upside on the table. But until then, investors should expect more volatility.

The post What on earth’s going on with CSL shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.