UPDATE: Wunderlich Securities Downgrades Sandridge Mississippian Trust to Sell on Long-Term Distribution Outlook
Wunderlich Securities reduces its rating on Sandridge Mississippian Trust (NYSE: SDT) from Hold to Sell and cuts its price target from $27 to $23.
Wunderlich Securities comments, "We are lowering our rating on SandRidge Mississippian Trust I (SDT) to Sell from Hold and our price target to $23 from $27 to reflect a reduced longterm distribution outlook. Our distribution estimates are impacted by lower commodity prices and, because SandRidge is structured as a trust, its value should theoretically decline over time as investors will receive fewer distributions. We would use holdings in SDT as a source of funds to invest in similarly yielding trusts that have less capital downside potential. We continue to believe that the current distribution is safe."
SDT closed at $25.86 on Monday.
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