BMO Capital analyst Phillip Jungwirth downgraded Antero Resources to Market Perform from Outperform with a price target of $28, down from $31. The downgrade reflects a less competitive free cash flow and capital return profile through 2024 and the stock’s above-peer average valuation, the analyst tells investors in a research note. The firm sees a "more muted" medium-term outlook for Antero and says the stock’s risk/reward is less favorable given its high earnings volatility. Antero’s liquids leverage and high cash costs work great when commodity prices are strong, but its free cash flow is less resilient in a downturn, contends BMO.
Published first on TheFly
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