Update

** Biotech major CSL CSL.AX falls 3.8% to A$171.09, lowest since early May 2018

** Stock extends Tuesday's losses on trimming FY profit forecast, delaying divestment plans for vaccine division, Seqirus, citing unprecedented drop in U.S. flu immunisation rate

STOCK UNDERVALUED, WITH ROOM FOR MARGIN REBOUND

** Morgan Stanley lowers PT to A$248 from A$285, citing slower growth in co's franchises Seqirus and Albumin, gradual CSL Behring margin recovery; positive on medium-to-longer term outlook

** Jefferies trims PT to A$240 from A$275; believes stock undervalued, but sees slow re-rating on delayed productivity gains, tariff threats, reimbursement cuts, vaccine fatigue

** Bell Potter lowers PT to A$195 from A$230, citing weaker medium-term outlook; flags concerns about management credibility

** Morningstar expects longer Seqirus stabilisation; says stock undervalued, with margin rebound potential from plasma efficiency efforts

** Lowers fair value estimate by 3% to A$295

** YTD, CSL down 39.3%

(Reporting by Rishav Chatterjee and Shruti Agarwal in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))