Wall Street Weighs In after RSP Permian’s 1Q15 Earnings Release

Now let’s look at Wall Street recommendations for RSP Permian (RSPP) following its latest quarter earnings release on May 12.

Approximately 65% of analysts tracking RSP Permian (RSPP) surveyed by Bloomberg rate it a “buy” or some equivalent. Approximately 30% rate the company a “hold” or an equivalent, while 5% of the analysts surveyed rate it a “sell.”

In comparison, approximately 50% of analysts surveyed by Bloomberg that track Cenovus Energy (CVE) rate it a “hold” or some equivalent, while 64% of the analysts rated LINN Energy (LINE) as “hold.” Approximately 50% of the analysts tracking Continental Resources (CLR) rated it as “buy.” Continental Resources constitutes 1.3% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Following RSP Permian’s financial results disclosed on May 12, RBC Capital Markets, a Canadian investment bank that is part of the Royal Bank of Canada, gave RSP Permian (RSPP) a target price of $35. RSPP currently trades near $29, implying a 20.6% return for the next 12 months.

Investment bank Goldman Sachs (GS) has the target price of $33, implying a handsome ~14% return from RSP Permian over the next 12 months.

Tudor, Pickering, Holt and Co. gives RSP Permian an “accumulate” recommendation. Its target price of $36 implies a healthy 24% return over the next 12 months.

Investment bank Raymond James has a $35 target price for RSPP, with an “outperform” recommendation, implying a 20.6% return over the next 12 months.

Scotia Howard Weil, a part of Scotia Capital, gave RSP Permian a “sector perform” recommendation. Its target price of $34 implies a healthy 17% return over the next 12 months.

You can learn more about the oil and gas industry in Market Realist’s Energy and Power page.