Down 59%: Will CSL shares ever regain momentum?

CSL Ltd (ASX: CSL) shares are in the red again in Wednesday’s trade. 

At the time of writing, the shares are down another 0.22% to $98.33 a piece. Although at one point earlier this morning, the shares were up 2.3% to $100.80 each. 

It’s more bad news for investors after the shares suffered their biggest ever one-day crash on Monday this week. 

CSL shares tumbled 20% on Monday following the company’s latest market update. The company announced it has lowered its FY26 revenue guidance to US$15.2 billion on a constant currency basis, and an NPATA of around US$3.1 billion. This is down from a revenue of US$15.6 billion and profit of US$3.3 billion reported in FY25.

Today’s decline means CSL shares are now even further away from levels seen in 2024-25.

The biotech company’s share price has now dropped 28% over the past month, is 43% lower year-to-date, and is currently trading 59% below levels seen this time last year.

Why do CSL shares keep tumbling?

Dwindling investor confidence is the main reason that CSL shares keep tumbling.

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years, it has experienced a notable slowdown in earnings growth, operational challenges, and other headwinds, including lower vaccine demand, a surprise restructuring, and a shock CEO exit.

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. 

Are CSL shares still a buy?

Analysts have widely considered the biotech company’s shares oversold and undervalued for some time now. But it looks like sentiment is finally shifting.

Just two weeks ago, TradingView data showed that 12 of 18 analysts had a buy or strong buy rating on the stock, with an upside of up to 109% to $268.84 per share over the next 12 months.

But today, that data has been significantly revised.

The latest data shows that only 9 of 18 analysts now have a buy or strong buy rating on the shares. Another nine have a hold rating.

The potential target prices are much lower, too.

The maximum target price has been lowered from $269.84 to $195.19. Although it still implies a potential 98% maximum upside ahead for the shares.

The average $147.63 target price implies a potential 50% upside ahead for investors at the time of writing. 

Can CSL shares regain momentum?

It’s possible, but the latest guidance downgrade hasn’t helped investor sentiment. It’ll take a proven track record of short-term revenue and profit growth for investors to regain confidence.

Although if CSL is able to speed up its earnings growth, investor sentiment could shift quickly, and the share price could start to rebound. 

The post Down 59%: Will CSL shares ever regain momentum? 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.