UPDATE: JP Morgan Downgrades Forest Laboratories to Neutral on Elongated Recovery

JP Morgan downgraded Forest Laboratories

from Overweight to Neutral and lowered its price target from $41 to $37. JP Morgan said, "While Forest's development efforts have been highly successful and we see meaningful long-term term earnings power for the company, new product launches have lagged our expectations despite a significant ramp in SG&A. With a similar trend potentially repeating itself with several of the company's next-generation product opportunities, we believe Forest could see a more elongated recovery in earnings and along these lines, see better opportunities within our Specialty Pharma coverage." Forest Laboratories closed at $33.40 on Wednesday.