csl research

0906 [Dow Jones] STOCK CALL: Goldman Sachs JBWere downgrades CSL (CSL.AU) from Marketperform to Underperform citing several risks including downside potential to FY06 consensus earnings. Believes earnings outlook in FY06 is likely flat or down on-year; there's prospect of share price support drying up when current buyback is completed; decreasing risk of FY06 earnings upsside from plasma pricing; lack of valuation support even on basis of FY07 earnings; execution risks in delivering material uplift in earnings as inventory profits roll-off. Has A$26.50 valuation; stock closed Friday down 85 cents at A$30.90. (WES
1004 [Dow Jones] STOCK CALL: Smith Barney raises earnings estimates for CSL (CSL.AU) slightly after news of 50% expansion of its local flu vaccine facility; estimates expansion will create further A$10 million-A$15 million in revenue, A$2 million-A$3 million in EBIT. Also raises price target on CSL to A$41.87 from A$41.74. Keeps Buy rating. CSL last A$31.48. (RJN)



1104 [Dow Jones] STOCK CALL: Despite stock rout, Smith Barney keeps Buy rating on CSL (CSL.AU) after "nonmaterial" tax statement last Friday; says tax treatment is benign, FY06 forecasts consistent with previous discussions with industry. "However, the FY06 comments were sufficiently ambiguous to generate more questions than answers in a weakening market." Shaves FY06 EPS forecast by 3.3%, but keeps A$41.74 price target. CSL last off 2.9% at A$30.99, adding to Friday's 6.5% drop. (RJN)


1210 [Dow Jones] STOCK CALL: ABN Amro keeps Buy rating on CSL (CSL.AU) after tax statement, revenue guidance on Friday were both in line with its forecasts; adds accounting changes lead to overall 4.8% upgrade to ABN's FY06 net profit estimate. Keeps A$37.38 target vs latest A$30.80, down 3.5%. (RJN)


My thought: GS JBWere have always been negative on this stock, i am happy to keep holding onto this stock after some huge gains over the past two years. I am looking forward to some good news flow over the next 6-12 months.