Collins Stewart Raises Price Target on Forest Laboratories (FRX) Following Carl Icahn's 13D Filing
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Price: $12.00 --0%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Collins Stewart is reiterating its Buy rating on shares of Forest Laboratories (NYSE: FRX) while it raises its price target from $40 to $46 following the 13D filling by Carl Icahn on June 17, 2011.
The firm believes that the Street is under-estimating the company three new product launches, the Teflaro, Daliresp and Viibryd, and two in its late stage pipeline, Linaclotide and Aclidinum. Collins reports with the launch of Teflaro doing better than expected, there is no reason why shares of FRX shouldn't be trading at $45-$50 as a standalone company.
The firm looks at at anything strategic that Carl Icahn does to create value for FRX is a free call option on the stock and forecasts that it could drive the stock up to $60.
The company will file its annual proxy meeting no less than 10 days or no more than 60 days before its meeting. The proxy will contain its board members.
An analyst at the Collins comments, "there are 9 directors on the board and Icahn is proposing 4. The record date is June 24th so Icahn has one week to exercise his options to become a voting shareholder. This would likely make him the 2nd largest FRX shareholder. FRX met with Icahn last Tuesday. Although management cannot disclose what was discussed during the meeting, we think there are several strategic options for Icahn which include, cost cutting, selling FRX, dividend, additional share repurchase and strategic M&A."
Collins Stewart's current 2012 EPS and revenue estimates are $3.60 and $4.37 billion.
For more ratings news on Forest Laboratories click here and for the rating history of Forest Laboratories click here.
Shares of Forest Laboratories closed at $38.68 yesterday.
The firm believes that the Street is under-estimating the company three new product launches, the Teflaro, Daliresp and Viibryd, and two in its late stage pipeline, Linaclotide and Aclidinum. Collins reports with the launch of Teflaro doing better than expected, there is no reason why shares of FRX shouldn't be trading at $45-$50 as a standalone company.
The firm looks at at anything strategic that Carl Icahn does to create value for FRX is a free call option on the stock and forecasts that it could drive the stock up to $60.
The company will file its annual proxy meeting no less than 10 days or no more than 60 days before its meeting. The proxy will contain its board members.
An analyst at the Collins comments, "there are 9 directors on the board and Icahn is proposing 4. The record date is June 24th so Icahn has one week to exercise his options to become a voting shareholder. This would likely make him the 2nd largest FRX shareholder. FRX met with Icahn last Tuesday. Although management cannot disclose what was discussed during the meeting, we think there are several strategic options for Icahn which include, cost cutting, selling FRX, dividend, additional share repurchase and strategic M&A."
Collins Stewart's current 2012 EPS and revenue estimates are $3.60 and $4.37 billion.
For more ratings news on Forest Laboratories click here and for the rating history of Forest Laboratories click here.
Shares of Forest Laboratories closed at $38.68 yesterday.
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