On August 8th, MSSB came out with a buy rating and $62 price target. On September 9th, MSSB came out with a hold rating and $54 price target. We all realize that this company is sensitive to spreads that fluctuate.
Perhaps someone can assist me with the following questions:
1) What within the last 30 days caused MSSB to lower its guidance on this stock by 13%? We've known that spreads have been tighter for months now and I'm unaware of any other catalyst that would drop the target like this.
2) How does a $54 target equate to 'equal weight'? A $54 target represents a 28% premium over the current market value of the stock.
Perhaps I shouldn't even waste my time looking at MSSB analysis. Any thoughts are welcome.
Granted this is October now but it has been a great short. Looking for it to go even lower in the next 2 weeks. It broke 40 today with some volume. Anticipate 37 or lower some time this month. Too much oil now, economy still in the tank, big money short refiners as winter coming and of course the great job the president is doing guarantee's lower oil prices as the dollar moves down. He will get what he wants with his legacy from Obamacare.