Raymond James Lowers Range Resources Price Target to $45

Range Resources (NYSE:RRC) received an adjusted price target from Raymond James, which lowered its forecast to $45 from $47 while maintaining an Outperform rating. The move was attributed to a lower commodity price strip relative to their previous publication. According to the firm's analysis, the stock appears undervalued with a P/E ratio of 10.75.

The natural gas producer reported second-quarter production of approximately 2.3 billion cubic feet equivalent per day, in line with Raymond James and Street estimates. Total capital expenditures of $222 million came in around 17% above expectations, although full-year capex guidance remained unchanged at $675 million. Post-hedge pricing for the quarter reached $3.53 per thousand cubic feet equivalent, surpassing NYMEX by $0.64 and beating Street estimates by roughly 3%, largely driven by strong NGL realizations that exceeded expectations by 7%.

Range Resources' financial strength is reflected in its perfect Piotroski Score of 9 and 19% return on equity. The company returned approximately $102 million to shareholders through buybacks of roughly $78 million and dividends of $24 million during the quarter.