Mizuho Securities Starts Rice Energy (RICE) at Buy

October 5, 2016 4:06 PM EDT
Get Alerts RICE Hot Sheet
Price: $20.83 +0.97%

Rating Summary:
    25 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Mizuho Securities initiates coverage on Rice Energy (NYSE: RICE) with a Buy rating and a price target of $43.00.

Analyst Timothy Rezvan commented, "RICE shares appeared undervalued before September's Vantage acquisition, and still do now. Increasing core inventory, a growing queue of midstream drop-down candidates, and resurgent gas prices create a bullish setup. But the real embedded value we see in RICE shares is that of the GP of Rice's midstream subsidiary. We model $88 million of gross GP distributions in 2020, validating its $7/share value in our Street-high $43 PT. Pro forma for Vantage, RICE shares trade at 7.2x 2017E EV/EBITDA, despite strong earnings visibility from an attractively hedged gas production stream."

For an analyst ratings summary and ratings history on Rice Energy click here. For more ratings news on Rice Energy click here.

Shares of Rice Energy closed at $26.66 yesterday.

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