S&P Capital IQ Downgrades Forest Laboratories from HOLD to SELL, Target Price Reduced

October 19 00:00 2011

NEW YORK, October 19 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Capital IQ downgrades Forest Laboratories (NYSE: FRX) from HOLD to Sell. The 12-month target price has been reduced from $35 to $27.

Analyst Herman Saftlas, in a research note published yesterday mentions that the company reported its F2Q 2012 EPS short of the estimates due to higher than expected operating costs. The analyst says the sales of new products like Teflaro antibiotic, Daliresp for COPD and Viibryd antidepressant are disappointing, even though it booked 29% growth in the sales of Bystolic beta-blocker heart drug. The patent on Lexapro is going to be expired in March 2012,which constituted 53% of Q2 sales, the analyst adds. The target price is reduced based on new forward P/E & DCF valuations.