UPDATE: Deutsche Bank Initiates Cabot Oil & Gas Corporation with Hold on Lead Position
In a report published Monday, Deutsche Bank analyst Stephen Richardson initiated coverage on Cabot Oil & Gas Corporation (NYSE: COG) with a Hold rating and $75.00 price target.
In the report, Richardson noted, “COG's position in the Marcellus leads peers in both growth potential & returns, a fact well understood by the street. While improving well results will see the market continue to de-risk the acreage, the pace of development is driven by infrastructure additions. The COG business model will rapidly de-lever even at ~$4/mmbtu NG, and for those willing to look to 2015+ cash potential, the stock is attractive. High quality problems, we see valuation as a headwind as he market struggles with how much of this forward outlook to de-risk today and the growing free cash profile contributing to uncertainty surrounding reinvestment risk and the go forward strategy.”
Cabot Oil & Gas Corporation closed on Friday at $64.60.
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