March 17, 2009
Three months later, Morningstar again says Forest City Enterprises stock is worthless
Atlantic Yards Report
Even though Forest City Enterprises tried to discredit Morningstar's previous analysis that downgraded the company's stock rating to nearly worthless, it didn't prevent Morningstar from reasserting its position, though other industry analysts disagree:
It looks like déjà vu from December. An analyst from Morningstar, in a report (subscribers-only) that repeats nearly verbatim the conclusions in a report issued three months ago, yesterday again warned that stock from Forest City Enterprises (FCE), parent company of Forest City Ratner, is essentially worthless.
And, most likely, company representatives will fire back, as they did in December, by contrasting Morningstar's take with more optimistic assessments from other analysts and pointing out that the Morningstar analyst didn't speak to them.
Indeed, for the past three months, five analysts tracking FCE have consistently rated the stock (FCE.A) as a buy, or 2, on a scale of 1 (Strong Buy) to 5 (Sell), according to Yahoo Finance.
Specifically, two called it a Strong Buy (1), one called it a buy (2), and two recommended Hold (3). No one rated it Underperform (4) or Sell (5).
Posted by lumi at March 17, 2009 6:07 AM