UPDATE: Miller Tabak Upgrades Rosetta Resources to Buy, Raises PT Ahead of Expected Strong Growth

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In a report published Friday, Miller Tabak analyst Adam Michael upgraded the rating on
Rosetta ResourcesROSE
from Hold to Buy, and raised the price target from $49.00 to $55.00. In the report, Miller Tabak noted, “Rosetta Resources posted weaker than expected production in Q2 as a result of facility constraints at Gates Ranch and shut-in production at the Klotzman lease. The net effect was a loss of 2,000 Boe/d which has since been restored. We believe the large backlog of wells waiting on completion, including 19 wells at Briscoe Ranch which have average IP rates of 1,995 Boe/d (IRR's of 167%), will drive strong production growth in 2H. We are upgrading Rosetta to a Buy and raising our price target to $55 per share which represents a 4.6x multiple of our 2014 estimate of discretionary cash flow.” Rosetta Resources closed on Thursday at $46.24.
Posted In: Analyst ColorUpgradesAnalyst RatingsAdam MichaelMiller Tabak
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