Goldman Sachs Upgrades Forest Laboratories (FRX) to Buy; Potential for Strategic Options
Goldman Sachs upgraded Forest Laboratories (NYSE: FRX) from Neutral to Buy with a price target of $50.00 (from $40.00) citing increased potential for strategic options.
In its upgrade report analyst Jami Rubin notes their view on the stock has gradually improved since its initial upgrade to Neutral on January 10, initially based on margin improvement. Since that time management indicated they needed one year to assess new launches and on May 23, FRX announced their CEO succession plans.
"Our evolved view is supported by comments made by FRX on June 11 at our annual HC conference indicating that a new CEO would be empowered to make strategic changes," the analyst said. "We believe these changes could include more aggressive capital allocation such as use of debt and/or share repurchases."
For an analyst ratings summary and ratings history on Forest Laboratories click here. For more ratings news on Forest Laboratories click here. Shares of Forest Laboratories closed at $40.19 yesterday, with a 52 week range of $31.28-$43.85.
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