Southwestern Energy downgraded to Neutral from Buy at Seaport Research

Seaport Research downgraded Southwestern Energy (SWN) to Neutral from Buy without a price target. The primary focus for the exploration and production group in 2024 will be on continued consolidation, which Seaport expects to continue at a “similarly swift pace,” the analyst tells investors in a research note. The firm says the group “remains at a relatively reasonable valuation,” trading at 10.4% free cash flow yield in 2024. It cites Southwestern’s ongoing merger plan with Chesapeake (CHK) for the downgrade. Seaport continues to think the merger makes strategic sense, based both on operational and balance sheet synergies.