Searching for a defensive stock to add to your portfolio? CSL Ltd (ASX: CSL) shares could be an option. 

What is a defensive stock?

Defensive stocks are shares in (usually) mature, dividend-paying companies. These companies also have a record of consistent profits regardless of the state of the broader economy.  

Investors often associate them with industries like consumer staples, healthcare, utilities, and some food and beverage businesses – particularly fast-food chains. 

Demand for these products and services typically remains high even during an economic downturn.  

In the case of CSL, a global biotechnology company producing medicines and vaccines, it can be considered a defensive stock. This is because medicine and healthcare are essentials that people need to access regardless of economic conditions. 

Global uncertainty 

No stock is immune to the ebbs and flows of the global economy. After a rough 2025 so far for many portfolios, it's not outrageous to assume many investors will be looking towards defensive stocks to limit some of the damage. 

Why have stocks fallen to start the year?

If you are playing catchup on tariffs and how they are impacting sharemarkets, welcome to the fun! 

The Motley Fool's Chief Investment Officer in Australia, Scott Phillips provided an overview of how US Tariffs have impacted sharemarkets yesterday (and the month before, and before…). 

You might also find some relief in knowing the ASX and the US markets have never yet failed to regain, then surpass, a previous high following a global downturn. 

Broker views on CSL

If you've read all this and think this is just the beginning of the market going further into the red, defensive stocks like CSL could be an option for your portfolio. 

Fortunately, CSL could be undervalued right now. It has dropped more than 8% year to date and at the time of writing is trading at $257.68. 

This is well below its 52 week high of $313.55. 

Brokers seem to agree the biotechnology company is undervalued right now. 

Bell Potter currently has a buy recommendation and $321.10 price target on the stock. 

This indicates that an almost 24.64% jump is in the realm of possibilities. 

Last month, the broker attributed this positive outlook largely to Behring. It is a business treating rare and serious diseases that drive 70% of CSL earnings. 

This is a key example of why CSL is a defensive stock. People's need for this kind of treatment is related to health rather than economic factors. 

To paint this picture in more simple terms, we can compare the demand for health related services offered by CSL to other industries like travel, or luxury items. 

In times of economic downturn, demand might drop for an overseas holiday or new piece of jewellery, while health related services remain a need. 

Looking at other valuations, Trading View analysts have a strong buy rating on CSL shares and a one year price target of $319.37 (23.94% upside).