UPDATE: KLR Group Cuts Cabot Oil & Gas to Accumulate, Cites Valuation

In a research note published Wednesday morning, KLR Group downgraded shares of Cabot Oil & Gas Corp.

from Buy to Accumulate and boosted the price target from $47 to $48. In addition to a general valuation call, the firm's John Gerdes noted a "moderating stance on anomalous weather." Gerdes said, "Given the continuance of intensely cold weather through January, E&P equities now reflect ~$4.90 NYMEX gas prices. The '14 NYMEX gas strip is currently ~ $4.50, while the '15-'17 gas strip remains in a range of $4.10-$4.20. Our E&P target prices are anchored on a long-term $4.75 NYMEX gas price expectation." Shares of Cabot Oil & Gas are up more than a half percent to around $40.60 at last check.