Nomura Securities Starts RSP Permian, Inc. (RSPP) at Buy

Nomura Securities initiates coverage on RSP Permian, Inc. (NYSE: RSPP) with a Buy rating and a price target of $36.00.

Analyst Brian Downey commented, "We see RSPP as having a solid combination of core assets and operational efficiency. The blocky, relatively contiguous nature of its leases allows for productive development of the resource, leading to attractive cash margins and F&D costs."

He added, "Catalysts include potentially rising EURs (management type curves were recently increased, but we still see upside vs. peers) and downspacing tests, helping to further frame the resource potential. The acreage footprint makes RSPP attractive as a “going concern,” but also fits with our broader M&A thesis in the Permian (meaningful size, but could benefit from additional efficiencies of scale/acceleration—as either a target or consolidator). The quality and efficiency of RSPP’s acreage position, along with its congruence with our upstream M&A view, makes the company one of our top picks among mid cap E&Ps."

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 $28.02 yesterday.

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