Range Resources stock price target raised to $48 by Mizuho on improved efficiency

Published 23/07/2025, 12:44
Range Resources stock price target raised to $48 by Mizuho on improved efficiency

Investing.com - Mizuho (NYSE:MFG) raised its price target on Range Resources (NYSE:RRC) to $48.00 from $46.00 on Wednesday, while maintaining an Outperform rating on the natural gas producer. The new target represents significant upside from the current trading price of $35.65, with InvestingPro data showing analyst targets ranging from $27 to $50.

The price target increase follows Range Resources’ quarterly results, which showed in-line EBITDAX of $778.56 million but free cash flow approximately 44% above Street estimates. The stronger cash flow was primarily driven by approximately 13% lower capital expenditure spending. According to InvestingPro analysis, the company maintains a moderate debt level while delivering strong operational performance.

Range Resources lowered its 2025 capital guidance by approximately $10 million, citing improved operational efficiencies. Simultaneously, the company raised its production guidance, suggesting the efficiency gains are enabling higher output with less investment.

The company also updated its outlook for Appalachian basin gas fundamentals and NGL supply and demand, with both showing higher demand trends. Range Resources repurchased approximately $53 million of stock during the quarter in addition to paying its regular dividend.

Mizuho’s price target adjustment reflects expectations for lower cash taxes in 2026-27 compared to previous assumptions, contributing to a higher net asset value calculation for the company.

In other recent news, Range Resources Corporation reported second-quarter earnings that surpassed analyst expectations. The company posted adjusted earnings of $0.66 per share, exceeding the analyst consensus of $0.64. Revenue for the quarter reached $856.28 million, significantly higher than the expected $722.74 million. Additionally, Range Resources raised its production outlook and lowered its capital expenditure guidance for the year. Cash flow from operating activities was reported at $336 million for the quarter. These developments highlight the company’s improved financial performance and operational efficiency. Investors may note that these results reflect a positive trend in the company’s earnings and revenue. The company’s ability to exceed expectations could be of interest to stakeholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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