Range Resources Target Lowered
UBS Lowers Range Resources Price Target Despite Recent Earnings Beat
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Key Points
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UBS’s $44 target implies roughly 15% upside from Range Resources’ share price at the time of the reports.
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Range Resources reported quarterly revenue of $759.58 million, an additional detail beyond its earnings-per-share beat.
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Analyst views included a more bullish outlier: Stephens raised its target to $53 and rated the shares Overweight; Stifel also initiated coverage with a Hold rating and a $46 target.
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GuruFocus reported recent insider selling valued at $140,000 and estimated Range Resources’ GF Value at $45.98, compared with a cited market price of $38.23.
UBS cut its price target for Range Resources by 10% to $44 per share while keeping a Neutral rating, citing a more cautious outlook on the natural gas company UBS Report. Despite the downgrade, UBS said Range Resources' path to achieving 2.7 billion cubic feet per day of production by 2027 remains intact. The new target still implies about 15% upside from recent trading levels.
Range Resources just beat earnings expectations, posting 79 cents per share against analyst estimates of 66 cents GuruFocus. The energy company also reported quarterly revenue of $759.58 million. A consensus of Wall Street analysts rates the stock as a Hold with an average price target near $44, the same level UBS just set.
A Bullish Earnings Beat Tempered by UBS Caution
Range Resources delivered stronger-than-expected quarterly results, beating the consensus earnings estimate by 20%, but the market remains cautious. Benzinga reported that UBS attributed its price-target cut to a more conservative near-term outlook, though the analyst maintained that long-term production targets remain achievable. Insider selling of $140,000 recently occurred, adding to investor concern.
Wall Street Splits on Range Resources' Near-Term Prospects
Not all analysts are pessimistic on the energy producer. Benzinga reported that Stephens raised its price target to $53 and rated the stock Overweight, a bullish contrarian view. Stifel also entered coverage with a Hold rating and a $46 target. These mixed signals leave the stock with a neutral consensus despite the stronger earnings beat.
Valuation Gap Between Fair Value and Market Price
GuruFocus estimated Range Resources' intrinsic GF Value at $45.98, compared with a market price of $38.23 at the time of analysis. This $7.75-per-share discount suggests the stock may be undervalued. UBS's $44 target sits between the GF Value estimate and the market price, positioning it as a middle-ground view.
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