UPDATE: Citigroup Raises PT to $19.50 on Enduro Royalty Trust on Commodity Prices

Citigroup reiterated its Neutral rating on Enduro Royalty Trust

and increased its price target from $18 to $19.50. Citigroup noted, "The change to our target price primarily reflects an upward adjustment to our assumption for commodity prices. Our target price assumes applying an 11.5x P/DCF multiple to our next twelve months distributable cash flow forecast of $56.6 million (i.e. 4Q12 to 3Q13). Our target multiple assumption for Enduro is at a slight premium to the overall peer group as well as the select peer group (i.e. perpetual trusts) average multiple and reflects our view that the trust should benefit from: 1) exposure to development in one of the most prolific basins in the lower 48 states, 2) strong operators with significant experience, 3) the potential for modest production growth over time, and 4) a well balanced production mix." Enduro Royalty Trust closed at $18.66 on Friday.