Market Overview

KLR Sees Upside In Rosetta Following Sell Off


Rosetta Resources (NASDAQ: ROSE) may see a boost after KLR upgraded the stock from Hold to Accumulate and announced $59 price target (20.9 percent upside). The stock was upgraded on valuation.

The company has significant upside potential in the Eagle Ford and Delaware Basin sites, according to analyst John Gerdes. He sees these two locations driving 30 percent growth in 2015.

Gerdes continues that an Upper Eagle Ford pilot test has been successful, exhibiting similar performance as Lower Eagle Ford.

Related Link: Credit Suisse: U.S. Steel Industry Is Changing

In terms of the Delaware basin, only four to five rigs are currently in place and Rosetta plans to add 20 more in 2014.

The $59 price target was derived with an NPV of free cash flow and 15 percent discount rate. KLR Writes that a discount rate higher than the broader equity market is justified because of volatile investment involved in the energy space and and Rosetta’s market cap.

Shares of Rosetta Resources were last trading at $48.51, down 0.59 percent.

Latest Ratings for ROSE

Oct 2019Seaport GlobalDowngradesBuyNeutral
Oct 2018SunTrust Robinson HumphreyInitiates Coverage OnBuy
Sep 2018Seaport GlobalInitiates Coverage OnBuy

View More Analyst Ratings for ROSE
View the Latest Analyst Ratings


Related Articles (ROSE)

View Comments and Join the Discussion!

Posted-In: John Gerdes KLRUpgrades Analyst Ratings

Latest Ratings

TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
AAPLCowen & Co.Maintains153.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at