UPDATE: Morgan Stanley Upgrades Forest Oil on Potential Texas Panhandle Sale
In a report published Thursday, Morgan Stanley analyst Drew Venker upgraded Forest Oil (NYSE: FST) 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 closed on Wednesday at $5.14.
Latest Ratings for FST
|May 2014||Morgan Stanley||Upgrades||Underweight||Equal-weight|
|Apr 2014||Bank of America||Downgrades||Buy||Underperform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.