Pacific Coast Oil Trust (ROYT), Enduro Royalty Trust (NDRO) and Whiting USA Trust II (WHZ) are downgraded to Neutral from Outperform at Robert W. Baird, which also notes that after another missed distribution by a trust vs. estimates and a less robust outlook for U.S. monetary policy, the firm raises its targeted rate of return to 8% for NDRO and ROYT and to 9% for WHZ.
Enduro Royalty Trust (NDRO) gains 1.6% after Goldman starts coverage with a Buy and $24 PT. The firm believes there's upside to resource estimates for Enduro's energy assets, and also likes its "yield-oriented, investor-friendly financial structure." Goldman estimates Enduro will generate over $2/share in 2012-2013 distributions, a level that implies an 11%-12% annual yield.
Enduro Royalty Trust is engaged in the production and development of oil and natural gas from properties located in the Rockies, the Permian Basin of west Texas and southeastern New Mexico, and the Arklatex region of Texas and Louisiana.