Risk Reward Update

Research evidence excerpt

Risk Reward Update

Update

June 28, 2026 11:44 PM GMT

Morgan Stanley Australia Limited+MCSL Ltd | Asia Pacific David L Bailey

Equity Analyst

Risk Reward Update David.Bailey@morganstanley.com +61 2 9770-9245

What’s Changed

CSL Ltd (CSL.AX) From To

Price Target A$166.00 A$174.00

Bull Case A$230.00 A$238.00

CSL Ltd (CSL.AX, CSL AU)

Base Case A$193.00 A$201.00

Bear Case A$90.00 A$98.00 Australia Healthcare | Australia

Updated Components Stock Rating Overweight

EPS Industry View In-Line

Price target A$174.00

Shr price, close (Jun 26, 2026) A$114.87

Risk Reward for CSL Ltd (CSL.AX) has been updated 52-Week Range A$275.79-90.00

Fiscal Year Ending 06/25 06/26e 06/27e 06/28e

Reason for change

EPS (US$)** 6.63 6.42 6.70 7.30

Prior EPS (US$)** - - 6.75 7.39

The European Medicine's Agency has recommended the revocation of marketing

authorisation for Tavneos, a product focused on the treatment of ANCA-associated Unlessframeworkotherwise noted, all metrics are based on Morgan Stanley ModelWare

vasculitis. This is due to data quality issues relating to the trial that was used for **e ==MorganBased onStanleyconsensusResearchmethodologyestimates

regulatory approval. No new patients will be treated with Tavneos in the EU. CSL

has marketing rights for certain ex-US markets.

We assume modest revenue in 1H27E, with no sales assumed from 2H27E. The

impact of these changes is an average group EPS revision of -1%. Our revised DCF-

derived valuation reflects these changes as well as a lower AUD/USD used for DCF

conversion (previously 0.72). The impact of a weaker AUD/USD (a benefit to our

AUD-based PT) more than offsets the impact of EPS changes.

Morgan Stanley Australia Limited (“Morgan Stanley”) is acting as financial advisor

to CSL Limited ("CSL") on certain matters.