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UPDATE: Morgan Stanley Upgrades Forest Oil on Potential Texas Panhandle Sale

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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 2014MacquarieUpgradesUnderperformNeutral
May 2014Morgan StanleyUpgradesUnderweightEqual-Weight
Apr 2014Bank of AmericaDowngradesBuyUnderperform

View More Analyst Ratings for FST
View the Latest Analyst Ratings

Posted-In: Drew Venker Morgan StanleyAnalyst Color Upgrades Analyst Ratings


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