Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - Mizuho has raised its price target on Range Resources (NYSE:RRC) to $46.00 from $42.00 while maintaining an Outperform rating on the natural gas producer’s stock. The company, currently trading at $39.55 with a market capitalization of $9.4 billion, has shown strong momentum with a nearly 30% return over the past year. According to InvestingPro analysis, the stock’s RSI suggests it’s in overbought territory.
The firm cited Range Resources’ three-year plan to add approximately 400 mmcfe/d of production by 2027, supported by new processing and takeaway projects, as a key factor in the decision. The company’s expansion plans are backed by solid financials, with an EBITDA of $1.08 billion and a healthy gross profit margin of 47%.
Mizuho noted that while it sees potential downside to Range’s EBITDAX and free cash flow estimates compared to consensus expectations, the projected shortfall of approximately 8% and 4% respectively is less severe than the potential downside for industry peers.
The research firm highlighted that Range’s plan provides more clarity on its 2026 budget compared to competitors who still face commodity price volatility challenges, with management expected to reiterate a budget of approximately $650-700 million for 2026.
Mizuho’s updated price target is based on a net asset value (NAV) analysis, with the firm also indicating interest in management’s outlook on natural gas markets given recent final investment decisions on liquefied natural gas (LNG) export facility projects. The company operates with moderate debt levels and has maintained profitability over the last twelve months, with a return on equity of 12%.
In other recent news, Range Resources reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share of $0.99, which was significantly higher than the anticipated $0.64. Revenue also exceeded forecasts, coming in at $856.28 million compared to the expected $722.74 million. In a related development, UBS raised its price target for Range Resources to $42 from $40, following the company’s second-quarter update. UBS maintained a Neutral rating on the stock, noting that the company’s total capital expenditure was approximately 13% lower than Street estimates. These developments highlight recent positive trends for Range Resources, drawing attention from investors and analysts alike.
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