UPDATE: Cowen Securities Downgrades Rosetta Resources to Hold on Long-Term Positive View

In a report published Wednesday, Cowen Securities analyst Nicholas P. Pope downgraded the rating on Rosetta Resources ROSE from Buy to Hold.

In the report, Cowen Securities noted, “Our long-term positive view on ROSE has been predicated on its focused Eagle Ford development drilling, strong cash flow growth, and conservative balance sheet. The recent Permian acquisition addressed inventory questions, but expanded debt and share count. We think the bulk of its new vertical Wolfbone drilling opportunity is being fairly priced into our fully-loaded NAV of $53/sh (8% discount to NAV compares to our group at a 19% discount to NAV). Also, ROSE trades at 5.4x our 2014 EV/EBITDAX estimate (vs group at 5.8x).”

Rosetta Resources closed on Tuesday at $49.18.