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The CSL Ltd (ASX: CSL) share price is in the green in afternoon trading. At the time of writing, the shares are up 0.55%, trading at $221.62. For the month, the shares are 11% higher, but thanks to a flurry of investor sales in late August, over the year, the shares have shed 25% of their value.
Since hitting a 5-year low of $189.90 in September, CSL shares have rebounded 16.7%. But there is still some way to go for the shares to recover to the levels seen in mid-2025.
For context, the S&P/ASX 200 Index (ASX: XJO) is trading in the red today. At the time of writing, the index is 1.01% lower for the day, although this isn’t too surprising given the index reached an all-time high of 9,108.60 points in afternoon trade yesterday. Over the past month, the index has increased by 2.23%, and for the year, it is 9.77% higher.
What happened to CSL shares?
The biotech company’s shares suffered a brutal sell-off in mid-August. Investors were spooked by its FY25 results, a surprise restructure announcement, and a strategic demerger, which involved cutting 3,000 jobs.
Investors didn’t take the news well and fled from the stock, causing it to lose a fifth of its value within a week. A move which analysts said at the time was a dramatic overreaction.
Two months after the sell-off, analysts still maintain that CSL shares have been oversold. And recently, some have been reassigning their expectations over the next 12 months.
Is there any upside left on CSL shares?
According to TradingView data, most analysts think there is a lot of value left in CSL shares.
Out of 19 analysts, 14 have a buy or strong buy rating on the shares. The average target price is $278.99, and the maximum is $308.77. This represents an impressive potential upside of 26% to 39% for CSL shares over the year.
Just yesterday, Macquarie analysts wrote a note to investors confirming its outperform rating on the shares. But it also lowered its price target to $275.20. The broker said that it believes the shares are undervalued and that there is little risk from its planned demerger. The lower price target still represents a potential upside of 24% at the time of writing.
Philippe Bui from Medallion Financial Group (courtesy of The Bull) has a hold rating on CSL shares. He notes that the company has faced several headwinds over the past couple of months, but that while demerger plans have introduced short-term uncertainty, the strategy could unlock long-term efficiency gains.
Meanwhile, last week, Bell Potter trimmed its 12-month target price from $240 to $230 and has maintained its hold recommendation. The broker said the shares are still trading below value, although it also expects short-term volatility and recovery over the longer term.
