UPDATE: Credit Suisse Initiates Underperform, $28 Target on Southwestern Energy

Credit Suisse initiates its coverage on Southwestern Energy SWN with an Underperform rating and a price target of $28 a share as the company could struggle relative to large-cap peers given bearish gas fundamental, a premium valuation and lack of higher-valued liquids in portfolio. Credit Suisse says, "While the company is poised to deliver rapid growth from its burgeoning position in the Marcellus, the Fayetteville Shale remains the key driver of the stock. ...Our analysis indicates well performance in the Fayetteville has reached a plateau. In our view, SWN's relative performance has been driven by operating efficiencies that have masked these flattening trends in well performance." SWN closed at $30.98 a share yesterday.