UPDATE: Goldman Sachs Upgraded Forest Laboratories to Neutral on Improved Outlook

Goldman Sachs upgraded Forest Laboratories, Inc. (NYSE: FRX) from Sell to Neutral and raised the price target from $33.00 to $40.00.

Goldman Sachs commented, "We upgrade FRX to Neutral from Sell based on a more optimistic view of new products and our view that FRX's industry low margins leave substantial room for earnings appreciation if FRX either grows into its cost base or cuts costs to rationalize it. In either scenario we believe the time horizon for margin improvement is now near enough to warrant an upgrade as FRX begins to monetize a string of new product approvals."

Forest Laboratories closed at $37.30 on Thursday.

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