Morgan Stanley Downgrades New Fortress Energy (NFE) to Equalweight

Morgan Stanley analyst Devin McDermott downgraded New Fortress Energy (NASDAQ: NFE) from Overweight to Equalweight with a price target of $15.00 (from $35.00).

The analyst comments: "A series of project delays, cost overruns on FLNG, and the early cancellation of the FEMA contract in Puerto Rico have put pressure on NFE's balance sheet over the last few quarters, weighing on shares. Over the past few days, NFE has announced steps to address liquidity and refinancing concerns, including restructuring of some outstanding debt and a $400 MM equity issuance. We are updating our model for these latest developments, and also remove assumptions around "upside" growth from potential new projects in Puerto Rico and Brazil. From here, we believe the company will need to focus on operational execution, including bringing under-construction growth projects online. We reduce our price target to $15/sh ($35 prior) reflecting the removal of "upside" growth, a higher share count, and increased interest expense."

For an analyst ratings summary and ratings history on New Fortress Energy click here. For more ratings news on New Fortress Energy click here.

Shares of New Fortress Energy closed at $8.94 yesterday.

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