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

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Stifel Reiterates Rating, Lowers Price Target On Pacific Coast Oil Trust On Updated Estimates
UPDATE: Stifel Nicolaus Upgrades Pacific Coast Oil Trust To Buy, Names $10 PT On Attractive Risk/Reward

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

Feb 2017Stifel NicolausUpgradesHoldBuy
Jun 2015Stifel NicolausMaintainsBuy
Feb 2015BarclaysDowngradesOverweightEqual-Weight

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


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