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UPDATE: Miller Tabak Downgrades Rosetta Resources to Sell; Running Out of Oil Inventory

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Miller Tabak downgraded Rosetta Resources (NASDAQ: ROSE) from Hold to Sell and lowered the price target from $44.00 to $41.00.

Miller Tabak commented, "We have been wary of Rosetta's lack of oil inventory in the Eagle Ford, and believe the stock should trade at a lower multiple of cash flow as production growth is being driven by NGL's and natural gas. The recent “high-grading” of Rosetta's best drilling locations in the Karnes Trough has produced a short-term spike in oil production which should peak in Q1. Without an acquisition of additional acreage in the oil window, Rosetta will be forced to focus on its acreage in the liquids window where we expect to see continued weakness in NGL and natural gas pricing. We are downgrading our rating to SELL and reducing our price target to $41."

Rosetta Resources closed at $49.96 on Monday.

Latest Ratings for ROSE

DateFirmActionFromTo
May 2015KeyBancDowngradesOverweightSector Weight
May 2015KLR GroupUpgradesReduceHold
May 2015RBC CapitalMaintainsOutperform

View More Analyst Ratings for ROSE
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Posted-In: Miller TabakAnalyst Color Downgrades Analyst Ratings

 

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