Lehman Brothers called Forest Labs (FRX) the best near-term trading idea in its universe.
Analyst Richard Silver says despite his unchanged equal-weight rating, and a more cautious long-term outlook absent meaningful product pipeline strengthening, he thinks the shares offer the best near-term trading idea. He notes Forest Labs is approaching the Sept. 24 FDA advisory panel review of Alzheimer's drug Memantine, which he expects to be favorable. He also cites the stock's recent underperformance.
With September's arrival, and the end of summer vacations, Silver expect the financial community to become refocused on the Memantine panel meeting, which could drive stock outperformance ahead of the actual panel date.