Range Resources downgraded to Sector Perform after rally at RBC Capital

RBC Capital downgraded Range Resources to Sector Perform from Outperform with a price target of $39, up from $36. The analyst remains constructive on the company’s outlook, but reduced the rating given the stock’s recent strong relative outperformance to peers, a persistent weak natural gas market, and RBC’s recently lowered natural gas price outlook. While Range has pivoted more near-term activity to liquids-rich drilling where pricing is robust, natural gas still amounts to 50% of revenue, the analyst tells investors in a research note.