KeyBanc Downgrades Range Resources (RRC) to Sector Weight

KeyBanc downgraded Range Resources (NYSE: RRC) from Overweight to Sector Weight and removed its price target. Analyst David Deckelbaum highlighted extended valuations, relatively high debt, and uncertainty on deleveraging.

"We now model RRC as the most expensive gassy name in our coverage, trading at 17x on strip 2017E EBITDAX while growing 8-10% vs. peers of 11x that are growing by 12% on average. Still, RRC remains highly levered in 2017 even with a supportive gas strip approaching $3/Mcf at 5.5x. Current non-core asset sales likely will do little in the way of deleveraging and, absent a large move in macro, we believe RRC would be an ideal candidate for equity issuance," said the analyst.

For an analyst ratings summary and ratings history on Range Resources click here. For more ratings news on Range Resources click here.

Shares of Range Resources closed at $39.00 yesterday.

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