Forest Laboratories (FRX) NewsBite - FRX Price Target Cut

Posted on Wednesday, July 23, 2008 3:45 PM

Forest Laboratories Inc. (FRX) opened at 35.47. So far today, the stock has hit a low of 35.25 and a high of 35.85. FRX is now trading at 35.42, down 0.07 (-0.20%). The stock hit its 52 week high of 45.85 in July and set its 52 week low of 31.75 in June. FRX was steady during the second half of 2007, but has shown signs of weakness this year. Shares of Forest Laboratories have been relatively flat today after a Lazard Capital analyst reduced his price target on the stock to $42 from $48. The drug maker said yesterday its first-quarter profit slipped 9%, as it took a large charge after ending an agreement to promote a hypertension drug with Daiichi Sankyo. Technical indicators for the stock are bullish and steady while S&P gives FRX a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $40 range. FRX stock could rise up to 12.9% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]