Bank Of America Raises Price Target On Forest Labs To $45

According to Bank of America, Forest Labs (NYSE: FRX) price target is raised to $45.

Bank of America said that it is raising its PO to $45 (from $40) to reflect value for Namenda XR, which it assumes preserves some value for the franchise post-generic Namenda, as well as some additional cost leverage in the out-years. “Our prior model and PO did not include value for Namenda XR, which we believe was overly conservative given that FRX still has over three years to secure longer patent coverage and launch the product prior to Namenda generic competition in early 2015. While the stock seems somewhat overbought short-term and our PO suggests limited upside over the next year on a fundamental basis, we are sticking with our Buy as we await additional clarity on the process involving Carl Icahn.”

Forest Labs closed yesterday at $39.30.