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Friday - Mizuho (NYSE:MFG) Securities has adjusted the price target for Range Resources Corporation (NYSE:RRC), a natural gas and oil company, lowering it to $45.00 from the previous $47.00. Despite this change, the firm maintains an Outperform rating on the stock. According to InvestingPro data, the company maintains a GOOD Financial Health score, with analyst targets ranging from $22.55 to $55.00. The company currently appears overvalued based on InvestingPro’s Fair Value analysis.
The revision comes amid discussions about Williams Companies’ (NYSE:WMB) Project Socrates, which has generated a significant buzz due to its potential to add approximately $320 million to annual EBITDA. The project has also sparked investor optimism, as evidenced by Williams Companies’ shares outperforming the AMEI Index year-to-date. Range Resources currently generates $776.39 million in EBITDA, with its next earnings report scheduled for April 29, 2025.
Mizuho analysts anticipate that more information about Project Socrates will be disclosed in the near future. They acknowledge that investors are keen to understand the project’s replicability as a growth driver for Williams Companies in the medium to long term.
The firm has updated its financial model to account for recent developments, including Project Socrates, merger and acquisition announcements, and potential marketing advantages stemming from the cold weather in the first quarter of 2025. Other factors considered include contract rolls in the Eagle Ford Shale. These updates have led to an increase in the estimated EBITDA for 2025-2027, which in turn has raised the price target for Williams Companies to $67, up by $4 per share.
Despite the higher capital expenditure forecast, which may dampen Williams Companies’ near-term free cash flow, Mizuho analysts believe the company’s balance sheet and dividend payout remain robust. The firm’s Outperform rating stands, reflecting their positive outlook on the company’s financial health and growth potential. For deeper insights into Range Resources’ financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Range Resources Corporation has reported several significant developments. The company has announced an increase in its quarterly cash dividend by 12.5% to $0.09 per share, reflecting its commitment to delivering shareholder value. Additionally, Morgan Stanley (NYSE:MS) upgraded Range Resources’ stock rating from Underweight to Equalweight, raising the price target to $49, citing the company’s capital-efficient production growth strategy. Moody’s has also upgraded Range Resources’ Corporate Family Rating to Ba1, highlighting its solid operational performance and financial flexibility.
Benchmark analysts maintained a Hold rating on Range Resources, projecting an earnings per share of $0.92 for the first quarter, surpassing consensus estimates. The company’s hedging strategies are expected to contribute to this anticipated financial performance. Moreover, Range Resources has appointed Christian S. Kendall, former CEO of Denbury Inc., to its Board of Directors, aiming to leverage his extensive experience in the oil and gas industry. These recent developments underscore Range Resources’ strategic focus on growth, financial health, and governance.
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