Citi turns neutral on Australia's CSL on growth uncertainty, execution risks

Csl

14/05/2026 05:03

** Shares of Australian biotech firm CSL Ltd CSL.AX fall more than 2% to A$96.72

** Citi downgrades stock to "neutral" after FY26 guidance cut and leadership review, citing rising investor scepticism over growth outlook

** Says shares have fallen about 18% since the announcement on Monday, now trading near 11x Citi's FY27 core EPS estimates

** Says investors are questioning recovery prospects for China albumin and CSL's ability to deliver more than low-to mid-single-digit NPATA growth in FY27

** Notes uncertainty around leadership transition, with new CEO search seen as delaying execution of strategic changes

** 7 of 16 analysts rate the stock "buy" or higher, and 9 "hold"; their median PT is A$150 – LSEG data

** Stock down 43.94% this year, including the day's move

 (Reporting by Roushni Nair in Bengaluru)

 ((Roushni.nair@thomsonreuters.com))