UPDATE: Bank of America Initiates Rosetta Resources with Buy on Permian Acquisition Announcement
In a report published Wednesday, Bank of America analyst Jason Smith initiated coverage on Rosetta Resources (NASDAQ: ROSE) with a Buy rating and $60.00 price target.
In the report, Smith noted, “Rosetta has built a solid position in the Eagle Ford shale over the past few years while high-grading the balance of the portfolio. While initially dilutive to NAV, the recently announced $768mm Permian acquisition from Comstock should improve production visibility, providing significant running room at current levels. Additionally, the acquisition diversifies the asset base away from a single play, with upside potential from future development drilling. Rosetta has underperformed the peer group by 12% year-to-date, as post acquisition the need for financing created an overhang on the shares.”
Rosetta Resources closed on Tuesday at $42.91.
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