Tuesday, FBR Capital Markets upgraded Rosetta Resources, Inc. (ROSE) shares to Outperform from Market Perform and increased its price target to $15 from $6.50.
Analyst Rehan Rashid believes that the stock is undervalued based on the stock currently trading at 50% of its conservative 3P upside-case net asset value, or NAV, of $23 per share, driven by the optionality associated with its Eagleford Shale and Alberta Bakken programs.
The analyst noted that the results from two horizontal Eagleford Shale wells during the third quarter and two Bakken wells in the fourth quarter should be the near-term catalysts for further stock price appreciation.
Therefore, the analyst upgraded Rosetta Resources to Outperform and raising his price target to $15 per share, which represents his proved NAV of $9.25/share and 40% of his unbooked upside of $13.65/share, from $6.50 per share.
The analyst said that at current levels, ROSE is trading at 1.2x its proved NAV based on his $4.50/Mcf long-term natural gas price forecast and a 15% discount rate and at 50% of its 3P NAV.
Currently, ROSE is up $0.19 or 1.62% and trading at $11.92.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.