Topeka Capital Starts Rosetta Resources (ROSE) at Buy, $64 PT

March 27, 2013 8:16 AM EDT Send to a Friend
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Price: $17.73 -3.48%

Rating Summary:
    17 Buy, 11 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 15 | Down: 38 | New: 13
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Topeka Capital initiates coverage on Rosetta Resources (NASDAQ: ROSE) with a Buy. PT $64.00.

The firm comments, "ROSE is our top pick, given its premier position in the Eagle Ford shale play and its new foothold in the Wolfbone play. The recent foray into the Permian Basin provides the Company with approximately 800 net Wolfbone locations on 40-acre spacing (with potential for 20-acre spacing), relieving previous concerns regarding its inventory in the Eagle Ford. However, new concerns of equity risk and lower IRRs in the Wolfbone (vs. the Eagle Ford) have emerged, providing a buying opportunity in our opinion, as we have a high degree of confidence that ROSE can increase EURs, while driving down costs in the play. Further, should the Company elect to tap the equity markets; we believe it would be done in conjunction with an accretive event/announcement."

For an analyst ratings summary and ratings history on Rosetta Resources click here. For more ratings news on Rosetta Resources click here.

Shares of Rosetta Resources closed at $47.25 yesterday.

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