Rose Rock Midstream Now Covered by Stifel Nicolaus (RRMS)
Equities research analysts at Stifel Nicolaus initiated coverage on shares of Rose Rock Midstream (NASDAQ:RRMS) in a research note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $39.00 price target on the stock. Stifel Nicolaus’ target price indicates a potential upside of 11.75% from the company’s current price.
The analysts wrote, “We are initiating coverage of Rose Rock Midstream L.P. (RRMS), a publicly traded master limited partnership (MLP) and operator of crude assets. RRMS is a predominately fee-based partnership formed by SemGroup to own, operate, and develop midstream energy assets. The majority of the partnership’s assets are located in the Cushing, Oklahoma crude oil marketing hub. Cushing is the delivery point specified in NYMEX crude oil futures contracts for West Texas Intermediate (WTI) and is currently one of the largest crude oil hubs in the United States. Additionally, the partnership has exposure to the growing production in the Bakken, DJ Basin, Niobrara Shale, Granite Wash, and Mississippi Lime via its crude oil gathering and transportation pipelines. We are initiating coverage with a Buy rating on the units and a target price of $39.00. We base our target price on a 3Q14 annual distribution estimate of $2.05 and a 5.25% targeted yield. Accordingly, we estimate price appreciation of 11.7%, and when combined with current yield of approximately 5.2%, we arrive at a total return potential of 16.9%.”
A number of other analysts have also recently weighed in on RRMS. Analysts at Tudor Pickering upgraded shares of Rose Rock Midstream from a “hold” rating to a “buy” rating in a research note to investors on Wednesday, October 23rd. Separately, analysts at Citigroup Inc. upgraded shares of Rose Rock Midstream from a “neutral” rating to a “buy” rating in a research note to investors on Monday, September 30th. Finally, analysts at Zacks downgraded shares of Rose Rock Midstream from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday, August 14th. They now have a $43.10 price target on the stock. Two research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $42.35.
Rose Rock Midstream (NASDAQ:RRMS) opened at 34.90 on Monday. Rose Rock Midstream has a one year low of $27.71 and a one year high of $42.18. The stock’s 50-day moving average is $33.8 and its 200-day moving average is $36.51. The company has a market cap of $707.9 million and a P/E ratio of 21.10.
Rose Rock Midstream (NASDAQ:RRMS) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.03. The company had revenue of $161.42 million for the quarter, compared to the consensus estimate of $178.19 million. On average, analysts predict that Rose Rock Midstream will post $1.77 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Thursday, November 14th. Shareholders of record on Tuesday, November 5th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 5.16%. The ex-dividend date of this dividend is Friday, November 1st. This is a positive change from Rose Rock Midstream’s previous quarterly dividend of $0.44.
Rose Rock Midstream, L.P. owns, operates, develops and acquires a diversified portfolio of midstream energy assets.
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