UPDATE: Credit Suisse Reinstates Coverage on Rosetta Resources with Outperform Rating, $62 PT Following Permian Acquisition, Capital Raise

In a report published Tuesday, Credit Suisse analyst Mark Lear reinstated coverage on Rosetta Resources (NASDAQ: ROSE) with an Outperform rating and $62.00 price target.In the report, Lear noted, “We reinstate coverage of ROSE with an Outperform rating and $62 target price. With the big Permian acquisition and subsequent capital raise behind the company we argue ROSE has now addressed the two primary concerns with the company's performance; project inventory and subsequently funding the deal. We lower our 2013-2015 EPS estimates 16%/8%/3% to $4.15/$5.21/$6.12 primarily due to dilution from the recent equity offering. With the two biggest pushbacks on ROSE resolved, we expect stock performance will hinge on what the company does best; execute. The ~$1B of capital raised (7MM shares and $700MM of sr. notes) to fund the Permian acquisition and accelerated development of new assets removes the major hurdles we foresaw when the deal was announced in 3/2013. Along with the capital raise, ROSE formally increased 2013 production and capex guidance to 51-55 MBoe/d (from 47-51MBoe/d and our prior estimate of 52.1 MBoe/d) and $840-900MM (from $640-700MM and our prior $820MM estimate), respectively.”Rosetta Resources closed on Monday at $42.70.