On 6/28/2022 three energy sector analysts submitted updated price targets to TipRanks. Here are their adjusted price targets for AR.
> Raymond James rates AR a BUY with a price target of $60.00
> Morgan Stanley rates AR a HOLD with a price target of $41.00
> Mizuho Securities rates AR a BUY with a price target of $59.00
At the time of this post, AR was trading at $30.57.
My current valuation is now $65.00.
I lowered my ngas prices in 2H 2022 and 2023, but I raised my valuation multiple by 0.5 to 6.0 X annualized operating CFPS.
AR will report strong Q2 results, lots of free cash flow from operations (over $700 million FCF for the quarter and on pace for over $2.5 billion FCF for the year) AND I expect them to announce a dividend program. They also already funded a share repurchase program.
The Company's hedging program did reduce the impact of lower gas prices in 2H 2022.
Antero Resources (AR) Price Targets - July 1
Antero Resources (AR) Price Targets - July 1
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group