Canaccord Genuity Maintains a 'Buy' on Forest Oil (FST); The Other Shoe Drops on Q2 Pre-Announcement
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Price: $4.88 -3.17%
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade FST Now!
Canaccord Genuity maintains a 'Buy' on Forest Oil (NYSE: FST) price target of $12.00.
Analyst, John Gerdes, said, "Forest pre-announced Q2 production of ~335 Mmcfepd, 6% below our estimate and ~2 Mmcfepd below Q1 volumes. Output was reduced by ~8 Mmcfpd due to a processing facility upset that was resolved in early July...In the Eagle Ford, Forest appears to have elected to go it alone rather than execute a joint venture. The company plans to hold 40,000 net acres of their 103,000 net acre Eagle Ford leasehold and monetize the remainder through divestitures or farm-outs."
"Preliminarily, we anticipate reducing our go-forward capital spending estimates by ~33% and recalibrating our production outlook in line with revised guidance. These adjustments should have a negative impact on our value view."
For an analyst ratings summary and ratings history on Forest Oil click here. For more ratings news on Forest Oil click here.
Shares of Forest Oil closed at $6.82 yesterday, with a 52 week range of $6.22-$27.18.
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Analyst, John Gerdes, said, "Forest pre-announced Q2 production of ~335 Mmcfepd, 6% below our estimate and ~2 Mmcfepd below Q1 volumes. Output was reduced by ~8 Mmcfpd due to a processing facility upset that was resolved in early July...In the Eagle Ford, Forest appears to have elected to go it alone rather than execute a joint venture. The company plans to hold 40,000 net acres of their 103,000 net acre Eagle Ford leasehold and monetize the remainder through divestitures or farm-outs."
"Preliminarily, we anticipate reducing our go-forward capital spending estimates by ~33% and recalibrating our production outlook in line with revised guidance. These adjustments should have a negative impact on our value view."
For an analyst ratings summary and ratings history on Forest Oil click here. For more ratings news on Forest Oil click here.
Shares of Forest Oil closed at $6.82 yesterday, with a 52 week range of $6.22-$27.18.
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