Deutsche Bank maintains Hold on Forest Lab
Wednesday, January 18, 2022 8:08 PM

Deutsche Bank has maintained its Hold rating on shares of Forest Laboratories (FRX) after the company announced its third quarter results.

The brokerage believes that the company continues to build out a broad late-stage product portfolio. Yet, Deutsche Bank believes the loss of top profit drivers Lexapro and Namenda (-85 percent of product revenues) between 2012 and 2015 would be too much to allow for a major EPS rebound till at least 2017-2018.

Deutsche Bank views that Forest Laboratories shares are either fully valued or over-valued given the upcoming dual ‘cliffs’ and its EPS estimate for 2012.