New Fortress downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded New Fortress Energy to Equal Weight from Overweight with a price target of $15, down from $35. The company over the last few days announced a series of steps to address liquidity and refinancing concerns – removing a key overhang, the analyst tells investors in a research note. The firm says that while the shares trade below fair value for the existing assets, New Fortress’ elevated leverage and higher interest burden increase execution risks. A series of project delays, cost overruns and the early cancellation of the FEMA contract in Puerto Rico have put pressure on the company’s balance sheet, contends Morgan Stanley.