UPDATE: Canaccord Genuity Raises PT to $70 on Improved Capital Efficiency
Canaccord Genuity reiterated its Buy rating on Rosetta Resources (NASDAQ: ROSE) and increased its price target from $68 to $70.
Canaccord Genuity commented, "We are increasing our target price $2 to $70 due to ~10% improvement in capital efficiency partly offset by a lower level of capital spending and higher treating/transport expense. The liquids composition of capital spending (60%-65%) is unchanged and in line with Rosetta's outlook.…Given the weakness in natural gas and NGL prices, Rosetta prudently shifted capital to areas with higher oil composition."
Rosetta Resources closed at $42.63 on Friday.
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