Morningstar maintains fair value for CSL despite underperformance

Csl

02/06/2026 22:33

** Morningstar keeps A$165 fair value estimate despite headwinds faced by Australia's CSL Ltd CSL.AX 
** Earlier this year, the biotechnology giant cut its annual profit citing regulatory headwinds and weak performance including other reasons
** The Investment research firm says shares are undervalued, says it is more optimistic on co's stock than the market on plasma demand and margins 
** Morningstar sees co's immunoglobulin revenue to grow at a 10-year compound annual growth rate (CAGR) of 5% on higher volumes from population growth, rising diagnosis rates including others
** Also forecasts plasma gross margins to lift to 100 basis points till FY35, cites efficiency initiatives and rationalization of high-cost collection centers
** Says market for plasma products has become increasingly competitive and most cost savings will be offset by price competition 
** Adds, separation of CSL Seqirus to  help CSL to refocus on the core business
** YTD, CSL down 46.4%, as of firm's last close

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))