4) Top analysts see upside potential in the share price. A November 16, 2013, report from S&P analysts (which was released after the cut in the payout) sets a 12-month price target of $8 per share for Eagle Rock. Consensus price target estimates are even higher at $8.85 per share. With this stock just about $6 now, investors could see upside of over 30% in capital gains alone if the S&P $8 target is reached, and more if consensus price targets of $8.85 are reached. Most analyst targets are based on where the stock is expected to go in the next 12 months, so 2014 could be a great year when you combine the yield of 10% and upside in the share price.
Yeah, but the assumptions they used in that analysis are now dead, it was before they sold the midstream, and it assumed operations would improve. As we now know, Q4 was another disaster, how bad remains to be seen. I think you can shred that report!