Goldman Sachs Upgrades Southwestern Energy (SWN) to Buy

Article Stock Quotes (2) Comments (0)

Goldman Sachs upgraded shares of Southwestern Energy (NYSE: SWN) from Neutral to Buy in a mid-day research note Monday. The firm's price target was raised from $38 to $41.

The firm said the revised investment rating follows gassy E&P's which "responded favorably to news Chesapeake (NYSE: CHK) is reducing its dry gas proudction and drilling activity in 2012." Southwestern is Goldman's favorite gassy E&P given:

1. "the company has attractive gas assets that can deliver strong returns if gas prices improve slightly from these levels;
   
2. ongoing exploration in the Lower Smackover Brown Dense play adds a potential catalyst for liquids upside if successful;
   
3. we see consolidation potential due in part to Fayetteville assets generating strong cash flow with rig count flexibility along with midstream assets that can be monetized."

Shares of Southwestern are up more than 10 percent Monday afternoon; the stock last traded at $32.50.

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

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Goldman Sachs Upgrades Meritor (MTOR) to Buy
• UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
• Maxim Group Upgrades J. C. Penney (JCP) to Buy, Sees 50% Upside

Create E-mail Alert Related Categories

Upgrades

Related Entities

Goldman Sachs

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?