UPDATE: Miller Tabak Initiates Sell, $35 PT on Rosetta Resources
Miller Tabak initiated its coverage on Rosetta Resources (NASDAQ: ROSE) with a Sell rating and a price target of $35 as NGL pricing weighs the company down in the near-term.
Miller Tabak commented, "NGL pricing plummeted during Q2 as a result of a rapid increase in production from liquids-rich plays, like Rosetta's Gates Ranch. Pricing for ethane and propanesince the beginning of the year have dropped 50% and 35%, respectively, compared to a drop in crude oil of ~ 10%. We prefer E&P companies that derive a higher percentage of production from crude oil."
Rosetta Resources closed at $41.72 on Tuesday.
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