UPDATE: Morgan Stanley Initiates Cabot Oil & Gas at Overweight on Superior Low-Risk Growth Profile

In a report published Thursday, Morgan Stanley analyst Drew Venker initiated coverage on Cabot Oil & Gas COG with an Overweight rating and $87.00 price target.

In the report, Morgan Stanley noted, “Premium multiple is justified by a superior, low-risk growth profile: 20-40% per year for 5-10 years. Positive risk-reward: growth outlook is more likely to improve than weaken; growth is largely limited by infrastructure that continues to expand. Discounts minimal credit for the large low-risk upside potential in the stock, primarily related to Marcellus downspacing, and stacked pay potential.”

Cabot Oil & Gas closed on Wednesday at $69.69.