Pritchard Capital Partners Reduces Price Target on Rosetta Resources (ROSE)
August 10, 2010 10:27 AM
Pritchard Capital Partners is out with a research report this morning, where it reiterates its Neutral rating on Rosetta Resources (NASDAQ: ROSE); it also lowered its price target to $31 from $36.
The PCP analysts cited the company’s recent earnings report, which has forced them to revise its 2010 and 2011 EPS and cash flow estimates to $0.57/1.15 and $3.38/$4.92 based off of recent guidance and results.
The analysts also noted that ROSE plans to drill eight vertical wells over a larger area to test the extent of their AlbertaBakken play. They further noted that, while not as impactful as a horizontal test well would be, meaningful results could be a catalyst for the stock
The PCP analysts also noted that ROSE's average 7 day rate for its Gates Ranch Eagle Ford wells was an impressive 320 bbls/d of condensate, 500 bbls/d of NGLs and 3.1 MMcf/d of gas.
Rosetta Resources Inc. is an independent oil and gas company engaged in the exploration, development, acquisition and production of oil and gas properties.
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