credit suisse - $40.50, page-10

Citi 25/02/2010 1 Buy, Medium Risk $40.26 15.8%

Citi FX analysts have revised their USD forecasts and their colleagues at the healthcare desk in Australia have now put the new forecasts through their valuation models. Earnings and target price changes are the result, with FY10 EPS rising 2%, while FY11-12 drop by 2.3% and 0.3% and the price target falls to $40.26 (from $40.53).

Citi sees upside risk to its EPS forecasts from price increases over the medium term, better Privigen conversion than is currently expected, further share buybacks and/or stronger USD than Citi forecasts.

BA-Merrill Lynch 25/02/2010 1 Buy, Medium Risk $36.60 5.2%

A quarterly result for Talecris in the US showed currently weak US IVIG sales but a positive outlook for the company of improving growth, the broker notes. Talecris is looking to expand further into markets outside the US as it engages governments in emerging markets in discussions over patient reimbursements.

The broker sees the result and guidance as a positive indicator for CSL.