In a report released yesterday, Kalei Akamine from Bank of America Securities reiterated a Buy rating on Antero Resources, with a price target of $47.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Kalei Akamine has given his Buy rating due to a combination of factors that highlight the strategic and financial benefits of Antero Resources’ recent acquisition of HG Energy. The acquisition, valued at $3.9 billion, is expected to significantly enhance Antero’s financial metrics, with the upstream business alone projected to generate approximately $800 million by 2026. The deal is seen as accretive, with a favorable EV/EBITDA multiple of 3.7x compared to Antero’s pre-deal multiple of 5.6x, leading to improved post-deal metrics.
Additionally, the acquisition aligns well with Antero’s strategic goals, given HG Energy’s substantial scale and inventory depth in West Virginia. The potential for further synergies and development of lightly tested areas provides additional upside not yet reflected in current valuations. Furthermore, strong gas prices and prudent hedging strategies are expected to support robust cash flow generation, enabling Antero to reduce leverage and continue stock repurchases, thus enhancing shareholder value.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AR in relation to earlier this year.