UPDATE: Stifel Nicolaus Upgrades Southwestern Energy to Buy on Expectations from Early Testing in Oil Plays

Stifel Nicolaus raised its rating on Southwestern Energy

from Hold to Buy and established a $38 price target in a research report published today. Stifel Nicolaus commented in the report, "We are upgrading SWN from a Hold to a Buy with a $38 target price, with additional upside potential if the early testing taking place in the Browne Dense and DJ Marmaton turn into new oil plays for the company. Along with providing exposure to a recovering gas market, we believe that SWN is a name worth owning ahead of its 2Q12 earnings release, given its valuation relative to other dry gas names, expectations of improving 2H operating results, and additional upside exposure from its Browne Dense and DJ Marmaton test programs, which should come out with earnings." Shares of Southwestern Energy were trading at $31.45 at the time of posting, down 1.66 percent from Monday's market close.