Questar Corporation’s (STR) Coverage Initiated With A Sector Perform Rating

Analysts at RBC Capital Markets have initiated coverage for Questar Corporation (NYSE: STR) with a Sector Perform rating. Analysts have set a price target of $50 for the Questar Corporation stock.

According to analysts, the company should be able to achieve its target of 12%-15% in annual production growth. Analysts believe that the hedging program at the company should mitigate near- term risk from weakness in natural gas prices in 2010. However, analysts expect limited upside in case of a price recovery.

Analysts expect Questar Gas Management to perform well in 2010. Analysts expect Questar Pipeline and Questar Gas to deliver stable returns.