UPDATE: Morgan Stanley Upgrades Forest Oil Corporation to Equal-Weight, Lowers PT on Potential Texas Panhandle Sale

In a report published Thursday, Morgan Stanley analyst Drew Venker upgraded the rating on

from Underweight to Equal-Weight, but lowered the price target from $7.00 to $6.00. In the report, Morgan Stanley noted, “Forest's potential Texas Panhandle sale drives uncertainty skewed to the upside vs. today's price. However, asset sales proceeds are difficult to predict and the process could end if Forest is dissatisfied with the offers. We would not be comfortable taking an Overweight stance based on the outcome of an asset sale. A key part of our Equal-weight stance is the unpredictable nature of the divestiture process; if it surprises to the upside, shares will likely outperform; if it fails, shares could underperform. Proceeds of $750 million from the Panhandle sale imply fair value based on our NAV analysis.” Forest Oil Corporation closed on Wednesday at $5.14.