Goldman Sachs Upgrades Southwestern Energy to Buy
Goldman Sachs has published a research report on Southwestern Energy (NYSE: SWN) and has upgraded the company from Neutral to Buy.
In the report, Goldman Sachs writes, "We upgrade SWN to Buy after gassy E&Ps responded favorably to news CHK is reducing its dry gas production and drilling activity in 2012. SWN is our favorite gassy E&P because: (1) the company has attractive gas assets that can deliver strong returns if gas prices improve slightly from these levels; (2) ongoing exploration in the Lower Smackover Brown Dense play adds a potential catalyst for liquids upside if successful; (3) we see consolidation potential due in part to Fayetteville assets generating strong cash flow with rig count flexibility along with midstream assets that can be monetized."
Goldman Sachs has raised the price target from $38 to $41 on Southwestern Energy, which is currently trading up $3.08 from Friday's $29.43 closing price.
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