Needham & Company Maintains a 'Hold' on Forest Laboratories (FRX); Continued Growth Challenges, But There Is A Success Factor
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Price: $12.00 --0%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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Needham & Company maintains a 'Hold' on Forest Laboratories (NYSE: FRX).
Analyst, Elliot Wilbur, said, "FRX kicked off the post-Lexapro era with 4QF2012 results that largely trailed expectations combined with lowered F2013 guidance, though shares, likely anticipating “something worse”, have proved resilient in the face of the daunting challenge of replacing the earnings mainstay Lexapro, which effectively will disappear as a P&L contributor over the next six months."
"At current valuation levels (18.0X “adjusted” F2014E EPS), it would take shares two years to grow into what we view as a reasonable multiple and given opportunity for multiple missteps on new launch execution vs. the low probability of a significant positive deviation from expectations for any asset in FRX’s new product stable, we believe reward/risk is increasingly unfavorable in the mid-to-upper $30’s." (FY13 EPS estimate cut from $1.26 to $0.89, FY14 raised from $1.64 to $1.70)
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 $34.97 yesterday.
Analyst, Elliot Wilbur, said, "FRX kicked off the post-Lexapro era with 4QF2012 results that largely trailed expectations combined with lowered F2013 guidance, though shares, likely anticipating “something worse”, have proved resilient in the face of the daunting challenge of replacing the earnings mainstay Lexapro, which effectively will disappear as a P&L contributor over the next six months."
"At current valuation levels (18.0X “adjusted” F2014E EPS), it would take shares two years to grow into what we view as a reasonable multiple and given opportunity for multiple missteps on new launch execution vs. the low probability of a significant positive deviation from expectations for any asset in FRX’s new product stable, we believe reward/risk is increasingly unfavorable in the mid-to-upper $30’s." (FY13 EPS estimate cut from $1.26 to $0.89, FY14 raised from $1.64 to $1.70)
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 $34.97 yesterday.
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