Range Resources price target raised to $37 from $34 at JPMorgan

JPMorgan raised the firm’s price target on Range Resources (RRC) to $37 from $34 and keeps an Underweight rating on the shares. In 2025, the firm expects natural gas producers to benefit from “three powerful secular demand trends:” the build-out of significant liquefied natural gas export capacity, rising power demand from electrification, and coal-to-gas switching. JPMorgan updated exploration and production models through 2030, which supports its view of long-term gas prices above $3.50 per MMBtu as it believes prices will need to reset to a higher level to incentivize incremental supply growth from the Haynesville and other higher-cost gas basins. The firm expects the oil market to shift from balanced conditions in 2024 to surplus in 2025 on supply additions. As such, it shifted to a “more defensive stance.”