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
See the top stocks recommended by analysts >>
Read More on AR:
- Antero Resources put volume heavy and directionally bearish
- Antero Resources call volume above normal and directionally bullish
- Antero Resources price target lowered to $38 from $51 at Mizuho
- Unusually active option classes on open February 22nd
- Antero Resources price target lowered to $34 from $41 at Truist