Wells Fargo Downgrades Rosetta Resources (ROSE) to Market Perform, Fairly Valued
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Price: $11.66 --0%
Rating Summary:
11 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded shares of Rosetta Resources (NASDAQ: ROSE) to a Market Perform rating from its previous rating of Outperform. The firm also set a new price valuation range of $48-$52.
Based on the company's Eagle Ford position at Gates Ranch, lack of success in the South Alberta Bakken and recent outperformance in the shares price, Wells Fargo is moving to the side lines.
An analyst at Wells Fargo comments, "In 2012, we expect shares to take a breather as the share price nears our NAV and investors look to pinpoint exposure to catalyst-driven stories. Speaking of catalysts, we recognize the risks to the downgrade ahead of additional South Alberta Bakken results and Eagle Ford drilling outside of Gates Ranch. However, in the South Alberta Bakken, success is largely written off in our view given subeconomic horizontal results previously released. In the Eagle Ford in 2012, the company intends to continue with its downspacing program at Gates Ranch as well as further testing of areas outside of Gates Ranch including Briscoe Ranch, Central Dimmit County, and Karnes Trough though we believe this is largely in shares at current levels. In our view, a solid company and management team; however, we believe risk/reward favors other names in the current environment."
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 $45.93 yesterday.
Based on the company's Eagle Ford position at Gates Ranch, lack of success in the South Alberta Bakken and recent outperformance in the shares price, Wells Fargo is moving to the side lines.
An analyst at Wells Fargo comments, "In 2012, we expect shares to take a breather as the share price nears our NAV and investors look to pinpoint exposure to catalyst-driven stories. Speaking of catalysts, we recognize the risks to the downgrade ahead of additional South Alberta Bakken results and Eagle Ford drilling outside of Gates Ranch. However, in the South Alberta Bakken, success is largely written off in our view given subeconomic horizontal results previously released. In the Eagle Ford in 2012, the company intends to continue with its downspacing program at Gates Ranch as well as further testing of areas outside of Gates Ranch including Briscoe Ranch, Central Dimmit County, and Karnes Trough though we believe this is largely in shares at current levels. In our view, a solid company and management team; however, we believe risk/reward favors other names in the current environment."
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 $45.93 yesterday.
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