Magnolia Oil & Gas downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo downgraded Magnolia Oil & Gas (MGY) to Underweight from Equal Weight with a price target of $22, down from $26. The valuation dynamics are “less favorable moving forward,” contends the firm, which believes the current valuation no longer justifies its differentiated business model and strong track record of capital returns, presenting downside risk. The firm, which has adjusted EPS estimates for 2024-2026 and initiated a view of 2027, notes it has lowered the price targets for most E&Ps across its coverage, except Range Resources (RRC), Chesapeake (CHK) and EQT Corporation (EQT).