UPDATE: Deutsche Bank Initiates Coverage on Cabot Oil & Gas Corporation with Hold Rating, $75 PT on Lead Position

In a report published Monday, Deutsche Bank analyst Stephen Richardson initiated coverage on Cabot Oil & Gas Corporation

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.