Cantor Fitzgerald Raises Price Target on Forest Laboratories (FRX) on Q3 Upside and New FY12 Guidance

While reaffirming its Buy rating on shares of Forest Laboratories (NYSE: FRX), Cantor Fitzgerald has increased its price target from $36 to $39 on the shares.

The company posted solid third quarter results with $1.04 per share in earnings and $1.2 billion in total sales. These figures topped the Street's consensus of $1.01 per share in and earnings and $1.18 billion in sales. Management also raised its fiscal 2012 earnings guidance from $3.60-3.70 to $3.65-3.75 per share.

An analyst at Cantor comments, "We think that 4Q earnings could positively surprise given the uncertainty around Lexapro genericization dynamics and the stability of the brand to date. Management also indicated that it is focusing on deals that bring marketed or "near-market" products rather than earlier-stage opportunities, which, if executed, could also drive the stock. Finally, we appreciate the high degree of first-line use for Viibryd, which management estimated at 50%. This favorable trend suggests strong future revenue growth."

For Q4 and FY12, the firm tweaked its EPS estimates from $0.77 and $3.72 to $0.74 and $3.73. Cantor also reduced its FY13 estimate from $1.35 to $1.17.

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 $32.08 yesterday.

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