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Investing.com - Citi has raised its price target on Range Resources (NYSE:RRC) to $42.00 from $38.00 while maintaining a Neutral rating on the stock. Currently trading at $38.96, the $9.31 billion market cap company is showing signs of being slightly overvalued according to InvestingPro’s Fair Value analysis.
The research firm updated its model with revised estimates ahead of earnings, projecting discretionary cash flow of approximately $288 million, which falls slightly below the consensus estimate of around $305 million. The company has demonstrated strong financial performance with 12% revenue growth and a healthy 44.25% gross profit margin in the last twelve months.
Citi expects Range Resources’ production and capital spending to track toward the top end of their respective ranges while seeing stability in operating expenses. The firm also anticipates pricing differentials to have remained resilient despite recent volatility in both gas and natural gas liquids (NGLs) markets. InvestingPro data shows the company maintains a GOOD overall financial health score, with additional insights available in the comprehensive Pro Research Report, which covers what really matters for informed investment decisions.
The firm predicts gas prices at a small discount to Nymex with NGLs at a slight premium to Mt. Belvieu. Citi expects the upcoming earnings call to focus on any further incremental improvements in drilling productivity and how that plays into Range Resources’ three-year growth plans.
Citi maintained its Neutral rating while increasing the target price given Range Resources’ "solid positioning against an improving natural gas fundamental environment," with particular interest likely surrounding management’s view on the timing and structure of potential in-basis data-center deals.
In other recent news, Range Resources Corp reported its first-quarter 2025 earnings, which exceeded analyst expectations with an earnings per share (EPS) of $0.96, surpassing the forecasted $0.90. However, the company’s revenue of $690.6 million fell short of the anticipated $787.78 million. Despite the revenue miss, Range Resources managed to reduce its net debt by $42 million and generated $183 million in free cash flow, allowing it to pay $22 million in dividends and invest $68 million in share repurchases. The company expects a slight dip in production for the second quarter due to maintenance activities but anticipates an increase in the latter half of the year. Additionally, Range Resources is collaborating with Liberty Energy and Imperial Land Corporation to supply natural gas to a planned power generation facility in Pennsylvania. The company has also recently extended its contract for an electric hydraulic fracturing fleet, ensuring consistent operational costs and efficiency. Meanwhile, analysts have shown interest in Range Resources’ infrastructure plans and hedging strategy, noting the company’s cautious approach to mergers and acquisitions.
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