Duncan Williams Maintains Buy on Forest Laboratories

Duncan Williams is out with its report today on Forest Laboratories

, maintaining Buy. In a note to clients, Duncan Williams writes, "(1) We think the marketed portfolio is worth $28 per share and conservatively allocate $7 to the pipeline, with $10/share in cash. (2) The company has an impressive balance sheet with approximately $3 billion in cash and no debt which is expected to sustain Forest through its patent cliff period; (3) We give Forest credit for late-stage pipeline assets Linaclotide, Eklira, Stedivaze, Azimilide, Aclidinium/Formoterol, Ceftazidime/Avibactam and Levomilnacipran (risk-adjusted). (4) Forest's intangible assets (large aggressive sales force and strong partnering reputation) should assure a steady flow of attractive pipeline assets into the company." At the time of posting, shares of FRX were trading at $37.83, down 1.64% from Friday's close.