UPDATE: BMO Capital Markets Downgrades Southwestern Energy Company to Market Perform, Lowers PT on Lack of Value Proposition

In a report published Monday, BMO Capital Markets analyst Dan McSpirit downgraded the rating on Southwestern Energy Company SWN from Outperform to Market Perform, and lowered the price target from $42.00 to $40.00. In the report, BMO Capital Markets noted, “We are downgrading SWN to Market Perform and lowering our target price to $40. We don't see a value proposition today backed by fundamentals that warrants a more positive rating. We find evidence in our revised NAV, an absolute valuation analysis that takes into account updated capital spending plans, as well as our assumptions on the pace of drilling activity targeting both the Fayetteville Shale and Marcellus Shale. Little upside from current trading levels is our conclusion (see Exhibit 1). We also see it in forward EV/EBITDA multiples - more accurately the lack of meaningful contraction in the ratio over time. In the context of growth the stock doesn't look cheap today or much less expensive tomorrow is our conclusion.” Southwestern Energy Company closed on Friday at $36.95.