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


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.

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Comments (2)
  • rjj1960
    , contributor
    Comments (1414) | Send Message
     
    Another example of the management concerned about their jobs and not the shareholders. FST sold off a ton of assets to stay afloat when they could of sold the entire company. Next up will be a reverse split then an equity offering. Take the 3.50 left and buy a long call on OAS and hang on.
    17 Dec 2013, 11:00 AM Reply Like
  • westelk
    , contributor
    Comments (441) | Send Message
     
    Why you should hate "analysts". Downgrade under $4? Why now instead of when it was "outperform" at $6? Do your own homework or get fleeced.

     

    Should FST run back up to $6, the same jerk behind this report will raise it to "outperform" from "neutral".
    17 Dec 2013, 03:54 PM Reply Like
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