Forest Oil (FST) Price Target Reduced to $2.50 at Goldman Sachs, Stock Remains Sell-Rated

February 26, 2014 9:38 AM EST
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Price: $0.34 --0%

Rating Summary:
    5 Buy, 15 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Goldman Sachs reiterated a Sell rating on Forest Oil (NYSE: FST) and reduced its price target to $2.50 (from $4.00).

Analyst Brian Singer said, "Eagle Ford Shale results poor, further calling into question asset quality. Due to faulting that caused volatility in well performance on the southern portion of FST's Eagle Ford Shale acreage, FST has reduced activity while it conducts 3-D seismic studies to determine if it can better target well locations."

"While FST's position is outside the core of the play, we view this as a material negative, particularly given that FST has highlighted a preference for its southern acreage. Ultimately, the seismic study may still result in a development program. But the risk around its acreage position – the key asset for the company – has increased," he added.

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 $3.23 yesterday.

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