KLR Group Downgrades Range Resources (RRC) to Accumulate

KLR Group downgraded Range Resources (NYSE: RRC) from Buy to Accumulate with a price target of $72.00 (from $74.00).

Analyst John Gerdes commented, "We are downgrading RRC from Buy to Accumulate and decreasing our target price $2 to $72 per share due to slightly lower price realizations. RRC has appreciated almost 40% since mid-March, outperforming the sector by ~25%, and reflects less than 20% equity value upside thus necessitating a downgrade to Accumulate."

He added, "Our fair value anticipates a $0.25/Mcfe incremental increase in Marcellus equivalent price realizations with commencement of ethane exports and propane shipments on Mariner East the second half this year. Our ’15 production growth expectation of ~20% is in line with company guidance (~20%). Our target price is anchored on a long-term ~$4.25 NYMEX gas price."

For an analyst ratings summary and ratings history on Range Resources click here. For more ratings news on Range Resources click here.

Shares of Range Resources closed at $62.06 yesterday.

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