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UPDATE: Stifel Nicolaus Initiates Pacific Coast Oil at Hold on Fair Value Estimate

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In a report published Monday, Stifel Nicolaus analyst Daniel Guffey initiated coverage on Pacific Coast Oil (NYSE: ROYT) with a Hold rating.

In the report, Stifel Nicolaus noted, “We believe it is most appropriate to value ROYT shares using an NPV and IRR approach. To arrive at our fair value estimate for ROYT, we have used a weighted average of variable discounted distribution models run at four price deck scenarios: (1) Stifel estimates, (2) Strip, (3) Upside scenario, and (4) Downside scenario. Assigning variable weights to the four scenarios, we arrive at a weighted average fair value and IRR of $17.80 and 7% for ROYT shares, assuming the units are purchased at the prevailing unit price held until the trust dissolves. This sensitivity analysis is the backbone of our thesis and leads us to the belief that the units are currently fairly valued.”

Pacific Coast Oil closed on Friday at $18.14.

Latest Ratings for ROYT

DateFirmActionFromTo
Aug 2014Stifel NicolausUpgradesHoldBuy
May 2014Bank of AmericaReinstatesNeutral
Mar 2014BarclaysMaintainsOverweight

View More Analyst Ratings for ROYT
View the Latest Analyst Ratings

Posted-In: Daniel Guffey Stifel NicolausAnalyst Color Initiation Analyst Ratings

 

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