Range Resources: Balanced Growth and Sustainability Amid Strong Performance and Cautious Reinvestment

Analyst David Deckelbaum from TD Cowen maintained a Hold rating on Range Resources (RRC – Research Report) and keeping the price target at $36.00.

David Deckelbaum has given his Hold rating due to a combination of factors including Range Resources’ strong fourth-quarter performance, which saw production align with expectations and EBITDAX surpassing street estimates by 6%. The company’s capital expenditures were slightly above internal projections but below market expectations. Despite these positive indicators, the FY25 guidance was largely in line with consensus, with ambitious growth targets set for the coming years.
Range Resources has outlined a significant growth plan, aiming for a 15% increase in production by the end of 2027. This plan is supported by new agreements and infrastructure improvements. However, the capital expenditure guidance remains consistent with previous estimates, suggesting a cautious approach to reinvestment. The company’s strategic initiatives, such as increasing well inventory and reducing emissions, also contribute to the Hold rating as they indicate a balanced approach to growth and sustainability.

Deckelbaum covers the Energy sector, focusing on stocks such as Diamondback, Conocophillips, and Devon Energy. According to TipRanks, Deckelbaum has an average return of -2.1% and a 37.29% success rate on recommended stocks.

In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $41.00 price target.