UPDATE: CSL Ltd (ASX: CSL) shares have plummeted a staggering 36% in 2025, closing at $179.56 on Thursday, as investors react to a series of alarming announcements from the healthcare giant. The latest blow came this week when CSL downgraded its earnings and revenue forecasts, causing shares to dive 15% on Tuesday. This significant sell-off follows a more than 21% drop in August after disappointing FY25 results.
The crisis stems from underperformance in CSL’s core plasma therapies division, known as Berhing, which has left investors shaken. As the company halts plans to spin off its vaccines division, many are left wondering: where do CSL shares go from here?
Three leading portfolio managers have shared their insights with The Financial Review, shedding light on potential recovery paths for CSL. Jamie Nicol, Chief Investment Officer at DNR Capital, views the sell-off as “disproportionate.” He perceives this downturn as a buying opportunity, stating, “There’s been a big overreaction for something that’s a small part of the business.” Nicol emphasizes that CSL remains one of DNR Capital’s largest holdings, suggesting confidence in the company’s long-term potential.
Nathan Parkin, Head of Australian Equities at Australian Ethical Investment Ltd, shares a more optimistic outlook. He acknowledges the market’s reaction to CSL’s second downgrade in a short period but reassures that the fundamentals of the business remain solid. “The valuation looks appealing, and we think it’s a good opportunity,” Parkin notes, reflecting a shift in sentiment as the stock becomes more affordable after years of high prices.
In contrast, Jun Bei Liu from TenCap adopts a more cautious stance, pointing out the difficulties of rebuilding trust with investors amid repeated disappointments. “For a growth company to start having those issues, it’s really difficult to say to investors, ‘trust me,'” she explains. Liu suggests that management changes may be necessary if the company continues to falter.
The All Ordinaries Index (ASX: XAO) has risen 10% during the same period, highlighting the stark disparity between CSL’s performance and that of the broader market. Investors are left grappling with the consequences of CSL’s struggles, especially as the company attempts to navigate a challenging landscape.
As the market reacts to these developments, attention shifts to what happens next for CSL. Analysts will be closely monitoring the company’s recovery strategies and any further announcements that could impact investor confidence. The urgency for CSL to stabilize its operations has never been greater, as stakeholders await clarity in a turbulent market.
For investors considering CSL, it’s crucial to stay informed. Motley Fool investing expert Scott Phillips recently noted that CSL may not be among the top picks for investors right now, urging potential buyers to evaluate alternatives based on the current market dynamics.
As the situation unfolds, the potential for recovery remains uncertain, but the insights from these investment experts provide a glimpse into the ongoing debate about CSL’s future. Investors are encouraged to keep a close watch on the company as it attempts to rebound from this significant downturn.
