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UPDATE: Goldman Sachs Upgrades RSP Permian, Inc. (RSPP) to Buy on Easing Leverage Concerns

March 11, 2016 6:59 AM EST
Get Alerts RSPP Hot Sheet
Price: $47.83 --0%

Rating Summary:
    23 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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(Updated - March 11, 2016 10:27 AM EST)

Goldman Sachs upgraded RSP Permian, Inc. (NYSE: RSPP) from Neutral to Buy with a price target of $34, implying 30% upside. Brian Singer highlighted easing leverage concerns.

"While investors have grown concerned over RSPP’s leverage profile we anticipate a transition to a virtuous (from vicious) cycle for the company will allow the firm to reaccelerate activity in 2017. Notably, we forecast RSPP will exit 2017 at 1.9x net debt to EBITDA (ttm) from 3.4x YE 2016 and do not view the firm as likely to issue equity to further aid deleveraging. In our view, commodity price improvement, potential accretive bolt-on acquisitions and further resource base expansion should all support shares trading higher over the next 12 months," said Singer.

For an analyst ratings summary and ratings history on RSP Permian, Inc. click here. For more ratings news on RSP Permian, Inc. click here.

Shares of RSP Permian, Inc. closed at $25.69 yesterday.



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