Credit Suisse First Boston (CSFB) has resumed coverage of Foster's Group Ltd. following its acquisition of Southcorp. The investment bank has cut its rating for the drinks company from 'outperform' to 'neutral' and lowered its share price target.

CSFB said it had reduced its share price target to A$5.60 from A$6.00 prior to Foster's launching the bid.

"The key issue we see driving Foster's share price over the next two years is the integration of Southcorp," CSFB said in a research report. "We base our valuation on our observations rather than management indications at this stage."

CSFB said its target price reflected its forecasts for Foster's to achieve net synergy benefits by the end of fiscal year 2010 of A$96m a year.

Foster's recently completed its A$3.2bn acquisition of Southcorp creating the world's second-largest wine company.