Southwestern Energy initiated with a Buy at Stifel

Stifel analyst John Annis initiated coverage of Southwestern Energy with a Buy rating and $7.50 price target. The company’s higher financial leverage and limited near-term free cash flow are reflected in the 1.0-times discount to its peers, the analyst tells investors in a research note. Stifel adds that Southwestern Energy’s exposure to the fast-growing LNG sector and contango in the forward strip creates what appears to be a “compelling rate of change story”.