On Tuesday, Piper Sandler adjusted its price target for Range Resources Corporation (NYSE:RRC), listed on the New York Stock Exchange under NYSE:RRC, increasing it to $43.00 from the previous $41.00. The firm has also reaffirmed its Overweight rating on the stock. This decision follows Range Resources' first-quarter earnings for 2024, which surpassed expectations due to a more favorable liquids mix and better pricing for natural gas liquids (NGL).
The company has seen an improvement in its financial outlook with the updated guidance indicating an increase in NGL pricing guidance to a range of negative $0.25 to $1.25 per barrel off Mt. Belvieu benchmarks. This is a positive adjustment from the previous range of negative $1 to $1. The capital expenditure and production volume forecasts remain unchanged, although there is a delay in dry well turn-in-lines (TILs) to the second half of 2024.
Piper Sandler's price target revision reflects the firm's response to Range Resources' quarterly performance and the subsequent adjustments to the company's guidance. The analyst noted that the company delivered a strong performance in the first quarter of 2024, which led to the revised estimates.
The updated NGL pricing guidance provided by Range Resources is a key factor in the analyst's optimistic outlook. Despite the delay in dry TILs, the company's maintained capital expenditure and volume forecasts suggest a steady operational path forward.
InvestingPro Insights
Following Piper Sandler's price target update for Range Resources Corporation (NYSE:RRC), current InvestingPro data and insights offer additional context for investors. With a market capitalization of $9.08 billion and a P/E ratio of 18.6, Range Resources is navigating the market with a moderate level of debt. The company's stock is trading near its 52-week high, which aligns with the analyst's positive sentiment, supported by a strong 29.0% price total return over the last three months.
InvestingPro Tips reveal that analysts have recently revised their earnings expectations downwards for the upcoming period, which may warrant investor attention. Additionally, the RSI indicates that the stock is currently in overbought territory. For those looking to delve deeper into Range Resources' performance and projections, InvestingPro offers more tips, including insights on profitability and stock price volatility. To explore these further, investors can use the exclusive coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
The company's strong return over the last five years and predictions of profitability this year could be seen as reinforcing factors for the analyst's optimistic outlook. As investors consider Piper Sandler's assessment alongside these InvestingPro insights, they are equipped with a richer understanding of Range Resources' financial landscape.
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