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Investing.com - Citi raised its price target on Antero Resources (NYSE:AR) to $45.00 from $40.00 on Monday, while maintaining a Neutral rating on the stock. The company, currently trading at $40.28, has demonstrated strong momentum with a 26.2% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The investment bank updated its model with revised estimates ahead of earnings, projecting discretionary cash flow of approximately $350 million compared to the consensus estimate of about $397 million.
Citi expects Antero’s production and capital spending to reach the top end of guidance, with both metrics hitting high marks for the year in the past quarter. Production aligned with consensus expectations, while capital spending came in slightly above analyst projections.
The firm noted that pricing on natural gas turned to a slight discount to Nymex due to underlying volatility and third-party downtime, but anticipated a return to recent trends in the second half of the year.
Citi maintained its Neutral rating while increasing the target price based on Antero’s "strong positioning against a longer-term bullish backdrop highlighted by advantaged pricing versus peers," with analysts expecting upcoming earnings calls to focus on in-basin demand fluctuations and growth prospects as "the Data Center narrative ramps."
In other recent news, Antero Resources reported its first-quarter 2025 earnings, which showed a shortfall in both earnings per share (EPS) and revenue compared to analysts’ forecasts. The company posted an EPS of $0.66, falling short of the expected $0.77, and revenue of $1.35 billion, missing the forecast of $1.38 billion. Despite these misses, Antero maintained its production guidance and highlighted a daily production rate of 3.4 billion cubic feet equivalent. Meanwhile, Antero Resources has been active in stock repurchases, buying back $92 million in shares year-to-date through April 2025. Raymond (NSE:RYMD) James has increased its price target for Antero Resources to $57, maintaining a Strong Buy rating, while JPMorgan adjusted its target to $44 but kept an Overweight rating. Mizuho (NYSE:MFG) Securities upgraded Antero Resources from Neutral to Outperform, citing a more optimistic outlook for U.S. natural gas. Additionally, WhiteHawk Income Corporation announced a $187 million acquisition of PHX Minerals, expanding its footprint in the Haynesville Shale and diversifying into the SCOOP/STACK region.
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