Gerdes downgrades Range Resources to 'neutral' on high valuation

Range Resources

25/05/2023 12:47

** Gerdes Energy Research downgrades Range Resources Corp
 RRC.N  to "Neutral" from "Buy", maintains $32 price target
    ** Says RRC has appreciated 23% since early May and now
reflects less than 10% equity value upside
    ** Adds that RRC trades at ~26% premium to its gas
peers on 2024 EBITDA
    ** Assuming $590 mln in net capital spending this year, RRC
should generate ~$710 mln of free-cash-flow in 2023 - Gerdes
    ** From 2024 through 2027, RRC should generate $3.8 bln of
FCF, which is 50%-55% of co's market cap - Gerdes
    ** 13 of 26 brokerages rate the stock "buy" or higher, 11
"hold" and 2 "sell"; their median PT is $32.35 - Refinitiv data
    ** Stock up 19% YTD as of Wednesday's close

 (Reporting by Arshreet Singh)
 ((Twitter: https://twitter.com/Arshreets))