Eagle Rock Energy Partners Receives Neutral Rating from Bank of America (EROC)
Eagle Rock Energy Partners (NASDAQ:EROC)‘s stock had its “neutral” rating reiterated by equities researchers at Bank of America in a research report issued on Thursday, American Banking & Market News reports. They currently have a $5.50 target price on the stock, down from their previous target price of $6.50. Bank of America’s price target would indicate a potential upside of 36.48% from the stock’s previous close.
The analysts wrote, “Yesterday after market close, EROC announced a suspension of its quarterly cash distribution, due largely to a timing delay around the closing of the divestiture of its midstream assets to Regency Energy Partners, LP (RGP). EROC previously received a second request for additional information on 27 February 2014 from the Federal Trade Commission (FTC) in connection with the RGP-deal. Due to the potential delay in the RGP deal closing, EROC was bumping up against balance sheet constraints. “In our view, the distribution suspension is a negative and another blow to weary EROC investors that already endured a previous cash distribution cut and unit price underperformace. That said, we believe the decision prudent in light of EROC’s current high debt levels – which should be alleviated upon completion of the RGP deal – and the limited duration of EROC’s existing debt covenant modifications. We maintain our Neutral rating.”
Separately, analysts at Wells Fargo & Co. downgraded shares of Eagle Rock Energy Partners from an “outperform” rating to a “market perform” rating in a research note on Friday, February 28th. Six investment analysts have rated the stock with a hold rating, The stock has a consensus rating of “Hold” and a consensus price target of $6.65.
Eagle Rock Energy Partners (NASDAQ:EROC) traded down 16.91% on Thursday, hitting $4.03. The stock had a trading volume of 11,835,530 shares. Eagle Rock Energy Partners has a 52 week low of $3.97 and a 52 week high of $10.32. The stock’s 50-day moving average is $5.02 and its 200-day moving average is $5.67. The company’s market cap is $631.3 million.
Energy Rock Energy Partners, L.P. is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas, fractionating and transporting natural gas liquids (NASDAQ:EROC), and marketing natural gas, condensate and NGLs; acquiring, developing and producing interests in oil and natural gas properties, and acquiring and managing fee mineral, overriding royalty and royalty interests The Midstream Business is located in five natural gas producing regions: the Texas Panhandle, East Texas/Louisiana, South Texas, West Texas and Gulf of Mexico.
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