UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Pacific Coast Oil Trust
In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Pacific Coast Oil Trust (NYSE: ROYT), and raised its price target from $17.00 to $19.00.
J.P. Morgan noted, “We rate ROYT Neutral with a Dec 2012 $19/unit price target. ROYT owns net profit interests in mature oil properties in the Santa Maria and Los Angeles basins of California. Approximately 97% of the assets are oily and 84% are proved developed, leading to a high producing, low decline, mature asset base. Due to the location of the producing assets, ROYT's California crude production receives Brent pricing, which currently trades at a premium to WTI. Additionally, the trust has hedged 60% of production through 1Q14 at $115/bbl. However, at current levels, we view ROYT as fairly valued according to our discounted cash flow model.”
Pacific Coast Oil Trust closed on Friday at $18.80.
Latest Ratings for ROYT
|Oct 2014||Stifel Nicolaus||Raise||Hold||Buy|
|Aug 2014||Stifel Nicolaus||Upgrades||Hold||Buy|
|May 2014||Bank of America||Reinstates||Neutral|
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