UPDATE: Goldman Sachs Raises PT to $58 on Cabot Oil & Gas on Comparative Strength to Peers
Goldman Sachs reiterated its Buy rating on Cabot Oil & Gas (NYSE: COG) and raised its price target from $55 to $58.
Goldman Sachs noted, "COG's advantages to peers in terms of growth/free cash flow/valuation were a clear theme for the first week of 3Q 2012 earnings season. Three gas E&Ps reported: (1) ECA – high FCF deficit and in our view a difficult transition to liquids (Sell rated); (2) RRC – industry-leading resource life, low on the cost curve, liquids growth opportunities but needs to reduce leverage and its FCF deficit (Neutral rated); and (3) COG – uniquely FCF positive with simultaneous leading growth and undemanding relative valuation. We continue to favor COG and SWN among gassy E&Ps."
Cabot Oil & Gas closed at $47.46 on Friday.
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