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UPDATE: Wunderlich Securities Upgrades Sandridge Mississippian Trust I to Hold on Attractive Yields

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Wunderlich Securities raised its rating on Sandridge Mississippian Trust I (NYSE: SDT) from Sell to Hold but lowered its price target from $23 to $20.

Wunderlich Securities commented, "We are increasing our rating on SandRidge Mississippian Trust I (SDT) to Hold from Sell and lowering our price target to $20 from $23 to reflect an updated outlook in our cash flow model. As a term trust, the units hold less value as time passes because of the reduced distribution stream. We use a discounted cash flow model with a discount rate of 5% to value the units. Using this model, we derive a value of $20/unit for the units. We have increased our rating to Hold as we believe the yield remains attractive but there is limited capital appreciation potential at the current levels."

Sandridge Mississippian Trust I closed at $20.03 on Friday.

Latest Ratings for SDT

DateFirmActionFromTo
Apr 2013OppenheimerDowngradesPerformUnderperform
Mar 2013WunderlichDowngradesHoldSell
Feb 2013RBC CapitalDowngradesSector PerformUnderperform

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