RBC Capital lifts INR stock with outperform rating, $30 target

Published 25/02/2025, 07:52
RBC Capital lifts INR stock with outperform rating, $30 target

Tuesday, INR Natural Resources (NYSE:INR) received a new Outperform rating from RBC Capital Markets, accompanied by a $30.00 price target. The coverage initiation by RBC Capital highlights INR’s strategic positioning in the Utica combo and Marcellus dry gas regions, offering the company a diversified exposure to both natural gas and oil markets. Currently trading at $19.13, near its 52-week low of $18.47, the stock appears undervalued with a price-to-book ratio of 0.49. InvestingPro data reveals the company maintains a robust gross margin of 69.87%.

The analyst from RBC Capital Markets noted INR’s early-stage development, which promises high growth rates, and the company’s visibility in generating free cash flow (FCF) in the near term. While InvestingPro analysis shows current negative free cash flow, the company has demonstrated profitability with $115.03 million in net income over the last twelve months. The potential for INR to double its acreage position in the coming years was also mentioned as a significant opportunity for scale development.

The report outlined several key points of discussion for investors considering INR stock. These include the company’s current scale and trading liquidity, the potential impact of sponsor owner sales, the prospects for future mergers and acquisitions (M&A), and the performance of wells across the Utica combo play.

INR’s development strategy and operational focus seem poised to capitalize on the unique opportunities within its operational footprint. The company’s ability to navigate the investor debates and execute on its growth strategy will be closely watched by market participants.

RBC Capital Markets’ Outperform rating and $30.00 price target reflect a positive outlook on INR’s growth trajectory and its ability to leverage its assets in the natural gas and oil sectors effectively. As the company continues to develop and expand its operations, investors will be looking for signs of sustained growth and profitability.

In other recent news, Natural Resources has launched its initial public offering (IPO), pricing 13,250,000 shares of its Class A common stock at $20.00 each. The shares began trading on the New York Stock Exchange at an opening price of $22.16 per share. The IPO is being managed by several financial institutions, including Citigroup (NYSE:C), Raymond (NSE:RYMD) James, and RBC Capital Markets as joint book-running managers. In addition, KeyBanc Capital Markets and Stephens Inc. are serving as senior co-managers. The company has given underwriters the option to purchase an additional 1,987,500 shares at the IPO price.

Furthermore, KeyBanc Capital Markets has initiated coverage on Natural Resources with an Overweight rating and a price target of $26.00. The firm highlights Natural Resources as a high-growth exploration and production entity with a strong position in the Utica Shale’s oil window. This particular area has seen increased interest following EOG’s entry in 2022 and successful well results. KeyBanc’s analysis suggests that the company is well-positioned for growth within the energy sector. The Overweight rating reflects expectations for Natural Resources to outperform the average total return of stocks covered by KeyBanc over the next six to twelve months.

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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