UPDATE: Goldman Sachs Upgrades Southwestern Energy to Conviction Buy on Marcellus Assets

Goldman Sachs upgraded Southwestern Energy SWN from Buy to Conviction Buy and announced a $46.00 price target. Goldman Sachs noted, "We add Southwestern Energy to the Conviction List for three reasons: (1) Marcellus Shale assets are underappreciated, but growth and well performance could improve perception in six months; (2) we view SWN's Fayetteville Shale position as the “next play in” as natural gas prices rise; and (3) SWN (like most gassy E&Ps, including Buy-rated COG where we raise our target) is not a consensus favorite. We see 38% upside to our $46 12-month price target, raised from $44." Southwestern Energy closed at $33.35 on Friday.