Mizuho Securities analyst Nitin Kumar CFA has maintained their bullish stance on RRC stock, giving a Buy rating yesterday.
Nitin Kumar CFA has given his Buy rating due to a combination of factors that highlight Range Resources’ growth potential and financial health. The company has announced a strategic three-year outlook projecting a 6% compound annual growth rate in production volumes from 2024 to 2027, positioning itself as a leader among major gas producers responding to favorable natural gas fundamentals. This growth is supported by a robust inventory that can sustain production for over 30 years with relatively low maintenance capital expenditure, emphasizing the quality of its assets.
Additionally, Range Resources is expected to generate significant free cash flow, estimated at $2.5 billion between 2025 and 2027, even with a conservative natural gas price assumption. The company has also secured substantial processing and transportation capacities to support its anticipated volume growth, addressing infrastructure constraints that have historically challenged Appalachian producers. These strategic moves, coupled with a favorable valuation compared to peers, underpin the Buy rating with a price target of $47 per share.
In another report released yesterday, Stephens also maintained a Buy rating on the stock with a $44.00 price target.
RRC’s price has also changed moderately for the past six months – from $30.290 to $38.550, which is a 27.27% increase.
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