UPDATE: Credit Suisse Upgrades Forest Laboratories on Business Improvements, Opportunities
In a report published Thursday, Credit Suisse analyst Vamil Divan upgraded Forest Laboratories (NYSE: FRX) from Neutral to Outperform and raised the price target from $60.00 to $85.00 due to the company's business improvements and opportunity.
Divan noted his increased confidence in the potential of the Namenda franchise and opportunities for operating margin expansion and business development growth. The analyst's bullish report was based on numerous factors including increased sales estimates for the Aptalis acquisition, management's ability to execute cost restructuring (specifically with the new CEO's record), the incremental upside from targeted M&A approach, a potential tax-oriented deal, and management's commitment to returning to pre-Lexapro cliff sales and EBITDA levels.
Credit Suisse commented, “We view the recent $2.9 billion Aptalis deal as strategically and financially positive for FRX. Strategic positives include expansion to specialty care areas, geographic expansion, and synergies with FRX's current therapeutic exposure. We applaud Brent Saunders' decisive moves in bolstering the company's long-term prospects.”
Forest Laboratories closed at $68.28 on Thursday and shares are currently up 2.62% in pre-market trading.
Latest Ratings for FRX
|Apr 2014||Cantor Fitzgerald||Maintains||Hold|
|Apr 2014||SunTrust Robinson Humphrey||Downgrades||Buy||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.