Wells Fargo Upgrades Eagle Rock Energy (EROC) to Outperform; Valuation Call
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Price: $8.63 --0%
Rating Summary:
1 Buy, 1 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 6
Rating Summary:
1 Buy, 1 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 6
Trade EROC Now!
Wells Fargo upgraded Eagle Rock Energy (NASDAQ: EROC) from Market Perform to Outperform with a price target range $11-$13.
Wells analyst says, "This upgrade is based on the current valuation, an 8% yield, and an increase in visibility for long-term distribution growth for the partnership based on recently announced organic growth projects and, in our opinion, a favorable outlook for upstream and midstream fundamentals. Our valuation range remains $11 to $13. EROC reported Q3 2011 results that were slightly below our estimates as natural gas gathering and upstream volumes fell short of our expectations which was partially offset by equity NGL volumes that were well above our estimates. We are lowering our 2011 and 2012 DCF per units estimates to $1.11 and $1.03 from $1.14 and $1.25, respectively. The 2012 decrease is based on a near-term increase in maintenance capex due to new So2 recovery requirements."
For more ratings news on Eagle Rock Energy click here and for the rating history of Eagle Rock Energy click here.
Shares of Eagle Rock Energy closed at $10.10 yesterday, with a 52 week range of $6.90-$13.00.
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Wells analyst says, "This upgrade is based on the current valuation, an 8% yield, and an increase in visibility for long-term distribution growth for the partnership based on recently announced organic growth projects and, in our opinion, a favorable outlook for upstream and midstream fundamentals. Our valuation range remains $11 to $13. EROC reported Q3 2011 results that were slightly below our estimates as natural gas gathering and upstream volumes fell short of our expectations which was partially offset by equity NGL volumes that were well above our estimates. We are lowering our 2011 and 2012 DCF per units estimates to $1.11 and $1.03 from $1.14 and $1.25, respectively. The 2012 decrease is based on a near-term increase in maintenance capex due to new So2 recovery requirements."
For more ratings news on Eagle Rock Energy click here and for the rating history of Eagle Rock Energy click here.
Shares of Eagle Rock Energy closed at $10.10 yesterday, with a 52 week range of $6.90-$13.00.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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