Morningstar says new CSL CEO removes uncertainty, but stock remains overvalued

CSL

22/10/2026 22:12

** Morningstar maintains its A$165 fair value estimate on Australia's biotech supplier CSL CSL.AX following the appointment of Deborah Waterhouse as chief executive and managing director from February 2027
** Says appointment removes leadership uncertainty and views Waterhouse as a credible choice to execute CSL's turnaround plan
** Investment & research firm says Waterhouse's experience renewing ViiV's HIV portfolio and commercialising new medicines is relevant as CSL faces increased competition in its core plasma business
** Morningstar expects key priorities for the new CEO to include improving returns on invested capital, which fell to about 10% from 25% over the past decade, lowering plasma collection costs and determining the future of Seqirus
** However, it argues that CSL shares are overvalued 
** Stock is up over 13% YTD, as of last close

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))