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Range Resources Upgrade
Posted: Tue May 17, 2016 11:54 am
by dan_s
Range Resources upgraded to outperform from market perform at Raymond James
The weak hands are done selling. RRC is a Core Holding quality stock, now is the time to add it to your portfolio.
Re: Range Resources Upgrade
Posted: Fri May 20, 2016 9:45 am
by dan_s
NEW YORK (TheStreet) -- Shares of Range Resources (RRC) are flat at $39.95 before Friday's market open as Nomura increased its price target on the stock to $45 from $29 and maintained its "buy" rating this morning.
"Range Resources surprised the market by announcing the acquisition of MRD in an all-stock transaction valued at $4.4 billion earlier this week," Nomura analysts said in an investor note, explaining why they raised the price target.
On Monday, Range Resources announced it will buy Memorial Resource Development (MRD) stock and assumed debt for $4.4 billion. Both are natural gas and oil companies headquartered in Texas.
It was a surprise that Range Resources would acquire Memorial Resource because "RRC didn't need incremental natural gas inventory," Nomura stated.
"In fact, its existing inventory is perhaps the deepest in the entire natural gas peer group, with operational efficiency in the early stages of deepening this position," the firm noted.
The reasons Range Resources merged with Memorial Resource include geographic diversification and accretion to cash flow, according to Nomura.
My valuation of RRC is now $47.50. - Dan