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UPDATE: Citigroup Initiates Coverage on Rice Energy on Valuation

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In a report published Tuesday, Citigroup analyst Robert S. Morris initiated coverage on Rice Energy (NYSE: RICE) with a Neutral rating and $27.00 price target.

In the report, Citigroup noted, “While Rice Energy exhibits the best debt-adjust per share growth metrics among our E&P coverage group, we believe the valuation offers only modest upside apart from extending its current drilling inventory and/or posting strong initial success in its Utica program. Based on its current leasehold position and future drilling plans, we peg the current drilling inventory at ~8 years, well below its larger Marcellus/Utica peers. However, a disproportionate amount of the 2014 budget has been earmarked for leasehold acquisitions. Also, Rice has yet to complete its first Utica horizontal well though strong results have been posted by others in the surrounding area.”

Rice Energy closed on Friday at $23.88.

Latest Ratings for RICE

Sep 2015CitigroupMaintainsNeutral
Aug 2015CitigroupMaintainsNeutral
Jul 2015Cowen & CompanyInitiates Coverage onOutperform

View More Analyst Ratings for RICE
View the Latest Analyst Ratings

Posted-In: Citigroup Robert S. MorrisAnalyst Color Initiation Analyst Ratings


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