Global healthcare giant CSL has seen its share price targets slashed by analysts following the announcement of a major restructure, which includes spinning off its vaccines unit and cutting jobs. The downgrades come in response to a reported disappointing performance in CSL’s core blood plasma business, coupled with revenue forecasts falling below expectations. CSL is a global biotechnology leader, researching, developing, manufacturing, and marketing a range of life-saving and life-extending biotherapies derived from human plasma and recombinant technology. The company operates one of the world’s largest plasma collection networks.
Barrenjoey has significantly cut its share price target for CSL, reducing it from $310 to $258 and downgrading its overall rating to neutral. According to Barrenjoey healthcare analyst Saul Hadassin, the strategic merit surrounding the demerger at this particular time is difficult to ascertain. This sentiment reflects broader concerns about the company’s strategic direction amid the ongoing restructuring process.
Wilsons Advisory has also adjusted its outlook, downgrading its share price target to $227.50, a decrease from the previous target of $250. The market reacted sharply to the news, with CSL shares closing 17 per cent lower on Tuesday at $225.50. The significant drop underscores investor apprehension regarding the potential impact of the restructure on CSL’s future performance and profitability.
