Forest Oil -4.3% on Baird downgrade on Eagle Ford concerns

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

Forest Oil (FST -4.3%) is downgraded to Neutral from Outperform with a $4 price target, down from $7, at Robert W. Baird, due to concerns around returns and future growth.

Given FST's sub-par rates of return and creeping leverage, Baird believes it will be difficult for FST to achieve robust growth rates going forward; while acknowledging recent share underperformance, the firm doesn't see any significant upside catalysts.