Citi initiates TLCR with “Buy”

Citi initiated coverage for Talecris Biotherapeutics (NASDAQ: TLCR) with a “buy” rating. The target price is set to $28. Citi expects TLCR’s gross margins to expand by 380 bp over the next couple of years. This is likely to boost TLCR’s EPS growth significantly ahead that of the peer group. The company’s sales are likely to growth at 5% CAGR through 2013.

Talecris Biotherapeutics aims to increase its R&D in 2010. Citi believes that post-IPO, TLCR now has the capacity to expand its fractionation capacity, which is expected to re-energize TLCR story after 2013.