Topeka Capital Downgrades Rosetta Resources (ROSE) to Hold

Topeka Capital downgraded Rosetta Resources (NASDAQ: ROSE) from Buy to Hold with a price target of $20.00 (from $28.00).

Analyst Gabriele Sorbara said, "This morning, we are downgrading ROSE to Hold from Buy and reducing our PT to $20 (from $28 previously) following its reduced 2015 outlook and disappointing early 2016 guidance, as our 2015 and 2016 EV/EBITDA multiple expands to 6.3x and 6.6x (from 4.7x and 3.8x, previously) and our RNAV drops to $26 (from $34 previously). ROSE's decision to preserve capital and defer growth is the prudent move; although, in this environment, we believe investors dollars will be put towards companies with better balance sheets and growth profiles through this down-cycle. While we continue to like the management and asset base, as showcased by the RNAV upside, we believe shares will be out of favor until commodity prices rebound, an event we expect in 2H15."

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 $21.87 yesterday.

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