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.
Latest Ratings for ROSE
|Feb 2015||Bank of America||Downgrades||Buy||Neutral|
|Feb 2015||Miller Tabak||Downgrades||Buy||Hold|
|Feb 2015||Topeka Capital||Downgrades||Buy||Hold|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.