Benchmark Co. analyst Subash Chandra has maintained their neutral stance on AR stock, giving a Hold rating today.
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Subash Chandra has given his Hold rating due to a combination of factors surrounding Antero Resources’ recent strategic transactions and financial outlook. The company has made a significant acquisition of HG Energy II’s assets in West Virginia while selling its Ohio Utica assets, which is seen as a positive move due to the potential synergies and optimization of infrastructure. However, the transaction involves a substantial term loan, which may limit the company’s ability to repurchase stock in the short term, although it could enhance buyback potential in the long run due to a lower cost structure.
Chandra’s Hold rating is also influenced by valuation considerations, as the current stock price reflects a long-term natural gas price that aligns with market expectations. While the company’s operational efficiencies and strategic asset management are commendable, the valuation suggests limited upside potential at present. The analyst plans to reassess the valuation upon the release of future financial statements, which may provide further clarity on Antero Resources’ financial health and strategic direction.
According to TipRanks, Chandra is a 4-star analyst with an average return of 8.4% and a 48.54% success rate. Chandra covers the Energy sector, focusing on stocks such as APA, Antero Resources, and Diamondback.
In another report released today, J.P. Morgan also reiterated a Hold rating on the stock with a $42.00 price target.