Thursday, January 6, 2011

Any Rosetta Resources (NASDAQ:ROSE) Weakness Consider a Buying Opportunity Says FBR

The shares of Rosetta Resources (NASDAQ:ROSE) already has Eagle Ford priced into it, but according to FBR, the $100/share optionality associated with the company’s SAB position is worth assuming, and any weakness should be considered a buying opportunity they added.

FBR said, "We believe that the transition of Eagle Ford into development mode is largely in the stock price. The continuation of measured pace into 2011 could begin to test investor patience. However, we firmly believe that the $100/share optionality associated with the company’s SAB position is worth assuming and hence would use any weakness as a buying opportunity. We reiterate our 12-month $50/share price target, which is based on the shares trading at about 35% of the 3P NAV of $140/share."

FBR Capital maintains an "Outperform" rating on Rosetta Resources, which closed Wednesday at $37.68, losing $0.46, or 1.21 percent.

No comments: