UPDATE: Bank of America Initiates Neutral, $22 PO on SandRidge Mississippian Trust II

Bank of America initiates its coverage on SandRidge Mississippian Trust II SDR with a Neutral rating and a price objective of $22 per share. Bank of America notes, "[T]his is essentially a term trust where the underlying value will deplete over time and accordingly we view prospective yield as a more appropriate measure of absolute and relative value. At current levels, the implied prospective yield for 2012 is 9% - however this is set to grow substantially as underlying properties are developed, lifting the prospective yield to 13% in 2013. Upside potential exists from better than expected well performance, but as a term trust it will not participate in long term upside potential of the underlying assets. All things considered we believe Neutral is an appropriate initial view of SDR." SDR closed at $20.58 on Friday.