Ahead Of The Bell: Rosetta Downgraded To 'Neutral'

NEW YORK (AP) — An analyst downgraded oil and gas exploration and production company Rosetta Resources Inc. Monday, saying the stock has reached a fair value after tripling since March.

SunTrust Robinson Humphrey analyst John Gerdes lowered his rating to "Neutral" from "Buy." He has a share price target of $14 on the stock.

Gerdes said the company's core growth areas of production include its California Sacramento Basin's Rio Vista field and its South Texas Lobo/Perdido trends.

Rosetta's key risks include volatile oil and natural gas prices and increased competition between exploration and production companies, which can lead to higher oil services costs, Gerdes said.

Shares of Rosetta finished Friday's trading at $14.65.