Up 88%! Why CSL shares remain an ‘appealing’ buy today

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

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed on Friday trading for $172.32. In late morning trade on Monday, shares are changing hands for $173.38 apiece, up 0.6%.

For some context, the ASX 200 is up 0.3% at this same time.

Today’s outperformance is par for the course for stockholders since CSL shares closed at a multi-year low of $92.24 on 3 June.

Indeed, with today’s intraday moves factored in, the share price is up a whopping 88.0% since plumbing that low water mark less than three months ago.

Atop those capital gains, investors who hold the stock at market close next Tuesday, 8 September, will receive the final unfranked CSL dividend of $2.277 a share. CSL will pay that dividend on 2 October.

CSL stock trades on a 2.4% unfranked dividend yield (partly trailing partly pending).

Why did the ASX 200 biotech stock plunge to multi-year lows in June?

Despite the remarkable turnaround since 3 June, CSL shares remain down 39% since January 2025.

The company has faced a number of headwinds that saw investors reaching for their sell buttons.

Among these, was the management’s announcement of their intent to spin off the CSL Seqirus segment, its influenza vaccine business, into a separate ASX-listed company.

The company has also been hit by lower than forecast plasma demand, which were partly to blame for CSL’s repeated earnings downgrades.

And investors were taken off guard by former CSL CEO Paul McKenzie’s unexpected exit in February this year.

But, judging by the surging share price these last three months, CSL’s FY 2026 ‘reset’ looks to be paying off handsomely.

And looking to ahead, Morgans’ Damien Nguyen believes the ASX 200 biotech stock remains an appealing opportunity (courtesy of The Bull).

Here’s why.

Should I buy CSL shares today?

“CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines,” Nguyen said. “Demand for its products remain largely independent of economic conditions.”

Summarising his buy recommendation on CSL shares, Nguyen concluded:

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

What did CSL report for FY 2026?

CSL announced its FY 2026 results on 18 August.

While the company reported a 1% year-on-year decline in revenue to US$15.8 billion, that came in well ahead of its revised guidance (issued in May) of US$15.2 billion.

Management also painted a more positive outlook for FY 2027.

“FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth,” CSL interim CEO Gordon Naylor said.

CSL expects steady revenue in FY 2027, while underlying net profit after tax (NPAT) is forecast to grow by around 5%.

CSL shares closed up 17.3% on the day the results were released.

The post Up 88%! Why CSL shares remain an ‘appealing’ buy today 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.