UPDATE: Piper Jaffray Lowers PT on Forest to $27


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Piper Jaffray reiterates an Underweight rating on Forest Laboratories (NYSE: FRX) and decreases its price target from $28 to $27.Piper Jaffray notes, “Not surprisingly, management pointed to heavy additional SG&A spending on tap to support new launches, namely linaclotide for constipation predominant irritable bowel syndrome (IBS-C) and chronic idiopathic constipation (CIC), and aclidinium for chronic obstructive pulmonary disease (COPD). With new products like linaclotide, aclidinium, and Daliresp facing significant adoption risks in our view and given that FRX's profitability for the foreseeable future is coming mainly from declining assets (i.e. Lexapro and Namenda), we continue to believe that FRX shares are expensive with a FY 2014 P/E of 21x. We reiterate our Underweight rating and are lowering our PT to $27 from $28 (reflecting lower Lexapro and Viibryd estimates).”Forest Laboratories closed at $34.57 on Wednesday.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: Analyst ColorPrice TargetAnalyst RatingsPiper Jaffray