UPDATE: Stifel Upgrades Rosetta Resources to Buy, Names $65 PT on Attractive Entry Point

In a report published Monday, Stifel analyst Amir Arif upgraded the rating on Rosetta Resources ROSE from Hold to Buy, and named a $65.00 price target. In the report, Stifel noted, “We are upgrading ROSE from Hold to Buy with a $65 target price. The drop in the stock last week was more due to overly optimistic expectations heading into the quarter as well as slightly reduced production/CF expectations for 3Q/4Q. This creates an attractive entry point and going forward we see two key drivers that should move the name higher: (1) accelerating sequential production growth given the backlog in the Eagle Ford and the addition of Permian/Eagle Ford rigs heading into 2014 and (2) meaningful upside risked NAV ($25/sh) being tested from different Permian horizontal zones as the company goes from one horizontal well to 30 wells next year, and from results from its ongoing upper Eagle Ford test, which are expected by midyear, and would add inventory to some of the best economic parts of the play.” Rosetta Resources closed on Friday at $53.56.
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Posted In: Analyst ColorUpgradesAnalyst RatingsAmir ArifStifel
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