BREAKING: CSL Ltd (ASX: CSL) shares have plummeted by 28% this year, closing last week at $212.47. This dramatic decline has left investors reeling, particularly as CSL has long been seen as one of the most stable performers on the ASX. What triggered this significant drop, and could it present a buying opportunity for long-term investors?
Latest reports highlight that CSL is facing serious short-term challenges that have spooked investors. Despite strong revenue growth in its FY 2025 results, the company fell short of expectations, primarily due to issues affecting its key division, CSL Behring.
Analysts at E&P have pinpointed the problem: “CSL Behring drove the gross profit shortfall in 2H25 and into FY26, with sales more heavily affected than expected by the US Medicare Pt D redesign, resulting in a -1.9% sales impact.” They also noted that CSL’s margins were squeezed by rising costs and increased investments in its product rollout.
Adding to the uncertainty, CSL has stepped back from its previous guidance on Behring’s gross profit margins. Investors are now left questioning the timing of recovery as the company grapples with US pharmaceutical tariffs and the potential spin-off of its CSL Seqirus vaccines business.
Despite these setbacks, CSL’s long-term outlook remains promising. The demand for plasma collections is rebounding strongly, and the company is committing significant resources to next-generation facilities and a robust research and development pipeline. These investments are crucial for maintaining CSL’s leadership in the industry.
For investors with a long-term perspective, this downturn could represent a unique buying opportunity. Analysts at Macquarie have recently reaffirmed their outperform rating on CSL, setting a price target of $275.20, which suggests a potential upside of nearly 30% from current levels.
As the market reacts to CSL’s recent performance, investors are urged to consider that while the company faces short-term hurdles, its fundamentals remain strong. Those willing to weather the current volatility may find themselves well-positioned for future gains.
In light of the current market climate, potential investors should weigh their options carefully. While CSL has a storied history of overcoming market challenges, experts recommend considering alternative stocks as well — some analysts suggest there may be better opportunities available.
Stay tuned for further developments as CSL navigates these turbulent waters, and watch for updates regarding its strategies moving forward.
