Morningstar sees Australia's CSL as 'cheap', optimistic for margin rebound

Csl

03/12/2025 19:06

** Morningstar says while CSL CSL.AX shares have lost around 40% since acquiring iron deficiency and kidney disease business Vifor in August 2022, several other factors have also contributed to the stock's lacklustre performance

** Adds while the Vifor acquisition has diluted return on invested capital (ROIC), Morningstar expects the segment to turn around and sees group ROIC to improve to CSL's pre-acquisition levels

** Morningstar flags CSL's current plasma product pipeline is slim, with no expectation of significant earnings contribution

** Investment research firm keeps fair value estimate at A$295, says stock screens "cheap"

** Morningstar sees CSL's margins to rebound from restructuring, new high-margin products and plasma efficiency initiatives that have yet to completely flow through

** CSL down 35.3% so far this year, as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))