UBS raises Range Resources stock price target to $42 on efficiency gains

Published 28/07/2025, 15:48
UBS raises Range Resources stock price target to $42 on efficiency gains

Investing.com - UBS raised its price target on Range Resources (NYSE:RRC) to $42.00 from $40.00 on Monday, while maintaining a Neutral rating on the stock. The natural gas producer, currently valued at $8.36 billion, is trading slightly below its InvestingPro Fair Value, despite showing strong returns over the past five years.

The price target increase follows Range Resources’ second-quarter update, which UBS described as "overall positive." While production numbers aligned with expectations, the company’s total capital expenditure beat Street estimates by approximately 13%. The company generated $1.07 billion in EBITDA over the last twelve months, maintaining a healthy 47% gross profit margin.

UBS highlighted that with Range Resources’ second-quarter 2025 maturity now behind it, the company is entering a period of higher shareholder returns while reducing its outstanding balance on its revolving credit facility.

The financial services firm noted that Range Resources continues to negotiate in-basin gas supply deals, which could potentially improve realizations and/or support volume growth. UBS indicated it expects more details on these plans through the second half of 2025.

UBS increased its fiscal year 2026 EBITDA estimate for Range Resources by 3%, contributing to the price target increase, but maintained its Neutral rating based on the stock’s current valuation.

In other recent news, Range Resources Corp reported impressive financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.99, significantly exceeding the anticipated $0.64, which represents a 54.69% surprise. Revenue also outperformed forecasts, reaching $856.28 million compared to the projected $722.74 million. These results highlight the company’s strong performance in the recent quarter. Additionally, despite the positive earnings report, the stock experienced a slight dip in regular trading but showed a recovery in premarket activity. Investors and analysts will be closely monitoring how Range Resources continues to perform in the coming quarters.

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