Antero Resources initiated with a Neutral at Citi

Citi analyst Paul Diamond initiated coverage of Antero Resources with a Neutral rating and $29 price target. The firm holds a favorable view of Antero’s competitive positioning given its “ample” takeaway capacity, strong pricing realizations, and recent improvements in operational efficiencies. However, this is balanced by the company’s relatively small scale and the limited likelihood for material organic growth, the analyst tells investors in a research note. Citi is on the sidelines pending the emergence of a differentiated narrative or incremental catalysts and expects the macro environment to keep the shares range-bound in the near-term.