And so it begins for energy, with the sell side repeating its iron ore price mistakes:
Morgan Stanley has trimmed its earnings expectations and price targets for Australian energy companies after lowering its oil price forecasts.
Its revised Brent oil price forecasts are US$90/barrel for 2015 and US$95 a barrel for 2016, down 8% and 7% from previous forecasts.
But it keeps Overweight ratings for Woodside (WPL), Oil Search (OSH), Karoon (KAR) and Senex (SXY), and Equalweight ratings on Origin (ORG), Santos (STO), Beach (BPT), Drillsearch (DLS) and Horizon (HZN).
It’s the right move but they’ll be chasing their tales on this as well. Brent at $70-75 for 2015 and 2016 is much more realistic.