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

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