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UPDATE: Stifel Reiterates On Rose Rock Midstream LP As Crude Dropdown Is Expected In Early 2015


In a report published Monday, Stifel analyst Selman Akyol reiterated a Buy rating on Rose Rock Midstream LP (NYSE: RRMS), but lowered the price target from $66.00 to $62.00.

In the report, Stifel noted, “We continue to like the Rose Rock story. SemGroup will complete the dropdown of its remaining crude assets in 2015 and we expect their natural gas assets will be next in line. Management highlighted while their business is comprised of mainly crude assets, their revenues are largely fee-based. After spending approximately $425 million in 2014, we expect SEMG and RRMS to spend a similar amount in 2015 to further drive this dropdown story. At this time, we are maintaining our Buy rating, while lowering our target price to $62.00 from $66.00. We arrive at our target price using Rose Rock's current yield of 4.25% and our annualized 2Q15 DPU estimate of $2.62.”

Rose Rock Midstream LP closed on Friday at $54.79.

Latest Ratings for RRMS

Jun 2016Initiates Coverage onNeutral
Apr 2016Initiates Coverage onEqual-Weight
Apr 2016AssumesEqual-Weight

View More Analyst Ratings for RRMS
View the Latest Analyst Ratings

Posted-In: Selman Akyol StifelAnalyst Color Price Target Analyst Ratings


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