UPDATE - Canaccord Genuity Upgraded Forest Oil (FST) to Buy; Spin-off Overhang Pruned, Healthy Assets Remain
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Price: $10.18 --0%
Rating Summary:
5 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
5 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UPDATE - Canaccord Genuity upgraded Forest Oil (NYSE: FST) from Hold to Buy, lowers price target from $30 to $22.
Canaccord analyst, John Gerdes, said, "We are upgrading Forest to BUY though lowering our target $8 to $22 due to the spin-off of the company’s Canadian business. With FST shares underperforming peers by ~40% this year, we believe value expectations have been sufficiently reset as we feel the stock now offers ~40% greater equity value upside potential than the group."
"We are also warming up to Forest’s Eagle Ford position, where we expect ~50% of the company’s Gonzalez County leasehold to be core acreage (~50,000 net acres). Forest is migrating toward longer lateral completions, which should bolster Eagle Ford production rates and improve go-forward capital productivity. As to production, our bottoms-up analysis suggests Forest should achieve the high end of ’11 US standalone guidance (335-345 Mmcfepd)."
To see more ratings changes on FST, Click Here
Canaccord analyst, John Gerdes, said, "We are upgrading Forest to BUY though lowering our target $8 to $22 due to the spin-off of the company’s Canadian business. With FST shares underperforming peers by ~40% this year, we believe value expectations have been sufficiently reset as we feel the stock now offers ~40% greater equity value upside potential than the group."
"We are also warming up to Forest’s Eagle Ford position, where we expect ~50% of the company’s Gonzalez County leasehold to be core acreage (~50,000 net acres). Forest is migrating toward longer lateral completions, which should bolster Eagle Ford production rates and improve go-forward capital productivity. As to production, our bottoms-up analysis suggests Forest should achieve the high end of ’11 US standalone guidance (335-345 Mmcfepd)."
To see more ratings changes on FST, Click Here
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