Deutsche Bank On FRX Q4 Results

Deutsche Bank has issued a report following the reported F4Q11 results from Forest Laboratories FRX. According to the report, “Forest continues to build out a broad late-stage/commercial pipeline, and the recent acquisition of Clinical Data is another step in the right direction. Nonetheless, we believe the loss of top profit drivers Lexapro and Namenda (~85% of product revs) between 2012 and 2015 will still be too severe to allow for a major EPS rebound until at least 2017-2018. And, currently trading at 8.4x our CY11 EPS est, we view FRX shares as fairly valued within the context of the approaching dual ‘cliffs.'” FRX has a Hold Rating and a $34 Price Target. FRX closed at $34.04 a share yesterday.