Goldman Has Notes On Forest Laboratories Earnings (FRX)

Goldman Sachs is out with a research report on Forest Laboratories, Inc. FRX after it reported earnings. It has a Neutral rating and a $35 price target on shares. In a note to clients, Goldman writes, "Looking past the FY4Q beat, focus rests squarely on execution of the upcoming launches where success will be key to increasing comfort around the guided “better than” $1.20 EPS floor set for the FY2013 trough year. FRX's FY2012-2013 outlook implies a significant pickup in SG&A and R&D spend that brings near-term dilution greater than we had anticipated in exchange for what the company believes could be longer term support through the cliff years – though dependent on successful uptake. We make no change to our Neutral rating, which balances valuation against a still uncertain growth outlook. We still see potential for FRX to unlock material value through a more aggressive use of cash, though visibility remains limited around potential action, and thus upside per our unchanged target." Shares of FRX are down 18 cents to $33.86, a loss of 0.5%.