UPDATE - Canaccord Genuity Downgraded Range Resources (RRC) to Sell; Marcellus Activity Governed by Infrastructure, Not Capital

UPDATE - Canaccord Genuity downgraded Range Resources (NYSE: RRC) from Hold to Sell, price target lowered $1 to $60.00.

Canaccord analyst, John Gerdes, said, "Over the past month, RRC has outperformed the sector by over 20% on apparent takeout speculation. We believe RRC reflects a ~30% buyout premium even though a buyout in our view seems increasingly unlikely. RRC trades at a 14x our ’12 EBITDA estimate – an almost 140% premium to the sector."

"As Range should spend ~60% beyond cash flow next year, we see little potential to accelerate value creation further within the current equity capitalization. The
bull case is that the company’s assets are worth more in the hands of a better-
capitalized enterprise."

To see more ratings changes on RRC, Click Here

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