Fresenius Medical Care AG & Co. KGaA (FMS), reported 3Q 09 results, which were in line with our expectations. Its revised guidance for FY 2009 also falls within our expectations. Therefore, our outlook for the company remains broadly unchanged. However, the current price level supports a HOLD rating for the ADR. Hence, we downgrade the ADR from a BUY to a HOLD. We will reassess our target price and rating in our 3Q 09 update report. We are likely to revert to a 6-24 month investment horizon as we now anticipate a marginal positive currency impact on the European stock over the long term1. Considering our fundamental outlook, we downgrade the stock from a BUY to a HOLD at current levels. We will reassess our target price and rating in our 3Q 09 update report.

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