Forest Oil -3.4% on Stifel downgrade

|About: Forest Oil Corporation (FST)|By:, SA News Editor

Forest Oil (FST -3.4%) is downgraded to Hold from Buy at Stifel Nicolaus based on valuation.

The firm says shares have approached its $6.50 target price and believes further upside is more dependent on an above industry average sales price for the ongoing Texas Panhandle sale; the asset accounts for 48% of FST's production and the wide range of transaction multiples for previous sales in this region suggests a wide range of potential outcomes for the stock.

At current levels, Stifel thinks the stock is already reflecting proceed potential of about $60K/boe/day relative to a transaction range of $50K-$70K/boe/day.