Morningstar says new CSL CEO removes uncertainty, but stock remains overvalued

By Reuters News

** Morningstar maintains its A$165 fair value estimate on Australia's biotech supplier CSL CSL.AX following the appointment of Deborah Waterhouse as chief executive and managing director from February 2027

** Says appointment removes leadership uncertainty and views Waterhouse as a credible choice to execute CSL's turnaround plan

** Investment & research firm says Waterhouse's experience renewing ViiV's HIV portfolio and commercialising new medicines is relevant as CSL faces increased competition in its core plasma business

** Morningstar expects key priorities for the new CEO to include improving returns on invested capital, which fell to about 10% from 25% over the past decade, lowering plasma collection costs and determining the future of Seqirus

** However, it argues that CSL shares are overvalued

** Stock is up over 13% YTD, as of last close

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