UPDATE: Morgan Stanley Downgrades Forest Oil Corporation on Less Attractive Risk-Reward Than Peers
In a report published Tuesday, Morgan Stanley analyst Drew Venker downgraded the rating on Forest Oil Corporation (NYSE: FST) from Equal-Weight to Underweight, and lowered the price target from $6.00 to $4.00.
In the report, Morgan Stanley noted, “Forest's relatively low asset value upside in the form of potential downspacing, stacked pay, or emerging plays is likely to cause FST shares to underperform peers exposed to those sources of upside. We are downgrading FST to UW from EW and lowering our PT to $4 from $6.”
Forest Oil Corporation closed on Monday at $5.47.
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