Range Resources: What Do Analysts Recommend?

On June 14, BMO reduced its target price on Range Resources by $2 to $6. On June 12, Citigroup reduced its target price by $4.5 to $7.5.

Rabindra Samanta - Author

Jun. 28 2019, Updated 2:05 p.m. ET

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Analysts’ recommendations

Among the 30 analysts tracking Range Resources stock, 50% recommended a “hold,” while 40% recommended a “buy,” according to data compiled by Reuters. Around 10% of the analysts recommended a “sell” on the stock.

On June 14, BMO reduced its target price on Range Resources by $2 to $6. On June 12, Citigroup reduced its target price by $4.5 to $7.5. On June 27, Range Resources closed at $6.89.

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Movement in the second quarter

So far in the second quarter, Range Resources has fallen 38.5%. Most of the fall was after the company’s first-quarter earnings results on April 22. Since then, the stock prices have fallen ~29.7%. In the first quarter, Range Resources’ total revenues fell 16.7% sequentially. Based on Reuters’ smart estimates, Range Resources total revenues are expected to fall 20.6% on a sequential basis and bottom out.

Weaker natural gas prices could be behind the fall. Henry Hub natural gas prices have fallen 12.7% in the second quarter. US crude oil futures fell 1.2%. Range Resources’s production mix in natural gas is 69.2%. If OPEC deepens the oil output cut, higher oil prices would likely encourage US oil producers to add more oil rigs. More rigs would increase the natural gas supplies this summer, which might contribute to more weakness in Range Resources’ stock prices.

Mean target price

Analysts’ mean target price for Range Resoruces is $13.31, which implies a potential upside of ~93.3% based on its last closing price. In comparison, the target prices for natural gas–weighted stocks EQT (EQT) and Cabot Oil and Gas (COG) suggest potential upsides of 67.7% and 24.9%, respectively.


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