CSL Ltd (ASX: CSL) shares have been one of the ASX's biggest comeback stories.
From a June low of $90, the biotech giant's shares have climbed over 120% to $202.40.
Is there still a buying opportunity after such a dramatic turnaround?
Why I still see opportunity
I believe CSL has attractive long-term growth prospects, with its Behring business a major reason for my confidence.
The business supplies treatments for serious illnesses, including immunoglobulin therapies, where demand continues to grow. Many patients require these treatments over long periods, providing CSL with a dependable source of revenue.
But growing demand isn't the only opportunity. CSL has also been working to make its plasma collection and manufacturing operations more efficient, which could help it improve profit margins as sales increase.
There are already encouraging signs of progress. In FY 2026, the company delivered US$176 million in transformation savings. But it doesn't plan to stop there, with further improvements planned according to management.
If CSL can continue reducing costs while meeting growing demand, I believe Behring could deliver meaningful earnings growth over the next decade.
Of course, there are challenges elsewhere in the business. Generic competition is hurting Vifor, while weaker US vaccination rates have weighed on Seqirus.
However, I believe Behring's long-term prospects provide a compelling reason to remain positive about CSL's future.
Are CSL shares still good value?
Based on current consensus forecasts, CSL shares trade on a PE ratio of 22.4 times FY 2027 earnings. That multiple then falls to 20 times by its FY 2029 earnings.
While this isn't cheap on paper, I believe it is still a fair multiple for a global healthcare company with a leading market position and potential to improve profitability over many years.
As a result, I would still be a long-term buyer of its shares today if I missed out on the rally.
Morgans isn't convinced
Not everyone agrees that CSL is still a buy. Morgans has just downgraded its shares to a hold rating following the remarkable recovery in its share price.
The broker believes the rally has been driven more by renewed confidence than meaningful increases in near-term earnings forecasts. With execution risks remaining, it argues that further gains will require evidence of sustained profit growth.
I can understand that caution. CSL has already rebounded sharply, and its turnaround won't be perfectly smooth.
But I'm investing with the next five to ten years in mind, not the next quarter. I believe the underlying strength of the Behring business, combined with operational improvements, leaves enough potential upside for me to keep rating CSL shares a buy.
The post Do I still rate CSL shares as a buy after rising 120% in four months? appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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