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Investing.com - Raymond James has raised its price target on Range Resources (NYSE:RRC) to $42.00 from $41.00 while maintaining an Outperform rating following the company’s third-quarter results. This new target aligns closely with InvestingPro’s Fair Value assessment, which suggests the stock is currently slightly undervalued. Analysts have set targets ranging from $31 to $50, with RRC trading at an attractive PEG ratio of 0.77.
Range Resources reported production of approximately 2.23 Bcfe/d (about 69% gas and 30% NGL) for the quarter, which was in line with expectations. The company’s third-quarter capital expenditure of approximately $190 million (with drilling and completion at about $165 million) came in 3% to 4% above estimates.
Management slightly increased its 2025 production guidance to approximately 2.230 Bcfe/d from 2.225 Bcfe/d and reaffirmed its three-year outlook for free cash flow and capital spending. Range Resources plans to deliver free cash flow, increase production by approximately 400 MMcfe/d, and maintain capital expenditure between $650-700 million for 2025-2027. The company generated $506 million in levered free cash flow over the last twelve months, translating to a healthy 6% free cash flow yield.
The company’s adjusted earnings per share beat estimates by approximately 9% against Raymond James estimates and 7% against Street consensus, driven by higher realizations and lower operating expenses. During the third quarter, Range Resources returned approximately $56 million to shareholders through buybacks while maintaining net debt at approximately $1.2 billion quarter-over-quarter. InvestingPro data reveals RRC has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength. The company maintains a moderate debt level with Total Debt/Capital ratio of just 14%, while paying a modest dividend yield of 0.97%.
Raymond James noted that the "biggest negative" in the update was "much weaker NGL realization guidance," but this factor did not change the firm’s overall positive outlook on the stock. Despite this challenge, RRC is trading at a low P/E ratio relative to near-term earnings growth, with analysts forecasting 28% revenue growth for fiscal year 2025. InvestingPro offers a comprehensive Pro Research Report on Range Resources, one of 1,400+ US equities covered with deep-dive analysis and actionable intelligence.
In other recent news, Range Resources Corp reported its second-quarter 2025 earnings, emphasizing a steady production rate and strategic financial maneuvers. The company remains committed to enhancing shareholder value through disciplined capital investment and operational efficiency. UBS maintained its Neutral rating for Range Resources, with a price target of $40.00, citing the company’s capital-efficient operations and improving balance sheet. These factors are seen as supportive of Range Resources’ volume growth and shareholder return outlook. These developments come as the company prepares for its third-quarter 2025 results. Investors and analysts are keeping a close watch on Range Resources’ performance and strategic initiatives. The focus remains on how the company will continue to manage its financial strategies in the coming quarters.
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