Analysts have trimmed their average price target for Range Resources from $42.63 to $41.96. This adjustment reflects tempered cash flow expectations and ongoing commodity price headwinds, despite continued optimism around long-term gas demand growth and production outlook.

Analyst Commentary

Recent research reports on Range Resources reflect a mix of optimism and caution regarding the company’s outlook and valuation. Analysts are weighing long-term growth potential against persistent commodity challenges and shifting industry dynamics.

Bullish Takeaways

• Bullish analysts highlight prospects for structural changes in U.S. gas markets over the next decade. These changes could lift price floors and reduce valuation risk for natural gas equities.
• Range’s production growth is on track. The company is progressing steadily toward ambitious multi-year volume targets, supporting upside for the stock's long-term value.
• Growing U.S. gas demand, particularly from LNG exports and expanding data center power needs, is viewed as a supportive backdrop for sustained company growth.
• Analysts see incremental value opportunities in areas such as stock buybacks and new power projects, which could further drive shareholder returns.

Bearish Takeaways

• Several bearish analysts cite ongoing commodity price headwinds, which are dampening near-term cash flow and continue to weigh on valuation.
• Some have reduced price targets on Range shares based on expectations of persistent oversupply and weak market fundamentals, particularly for natural gas prices.
• The industry’s track record of supply growth outpacing demand is a primary concern. Analysts caution that meaningful price recovery may not occur until supply constraints materialize.
• Operational updates are anticipated to be clean, but consensus views cash flow as likely coming in below previous expectations due to softer price realizations for natural gas and NGLs.

What's in the News

• Wells Fargo initiated coverage on Range Resources with an Overweight rating and set a $46 price target, citing the potential for a structural shift in U.S. gas markets that could support higher equity valuations. The analyst highlighted growing demand driven by LNG exports and increased power consumption from datacenters (Periodicals).
• Range Resources provided updated production guidance, expecting flat production in the third quarter of 2025 at 2.2 Bcf equivalent per day and projecting an increase to approximately 2.3 Bcf equivalent per day in the fourth quarter (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from $42.63 to $41.96, reflecting a tempered outlook.
• Discount Rate has fallen from 7.07% to 6.88%, indicating a marginally lower risk premium applied to future cash flows.
• Revenue Growth projections have moderated, declining from 13.68% to 12.54%.
• Net Profit Margin has improved from 19.55% to 21.31%, suggesting expectations for stronger profitability despite other headwinds.
• Future P/E ratio has fallen from 14.90x to 13.80x, signaling a slight compression in valuation multiples assigned to forward earnings.