Market Overview

UPDATE: Citigroup Initiates Coverage on Rice Energy on Valuation

Related RICE
22 Biggest Mid-Day Losers For Friday
Benzinga's Top Upgrades, Downgrades For September 8, 2017
Stocks Showing Improved Relative Strength: Centennial Resource Development (Investor's Business Daily)

In a report published Tuesday, Citigroup analyst Robert S. Morris initiated coverage on Rice Energy (NYSE: RICE) with a Neutral rating and $27.00 price target.

In the report, Citigroup noted, “While Rice Energy exhibits the best debt-adjust per share growth metrics among our E&P coverage group, we believe the valuation offers only modest upside apart from extending its current drilling inventory and/or posting strong initial success in its Utica program. Based on its current leasehold position and future drilling plans, we peg the current drilling inventory at ~8 years, well below its larger Marcellus/Utica peers. However, a disproportionate amount of the 2014 budget has been earmarked for leasehold acquisitions. Also, Rice has yet to complete its first Utica horizontal well though strong results have been posted by others in the surrounding area.”

Rice Energy closed on Friday at $23.88.

Latest Ratings for RICE

Sep 2017Goldman SachsDowngradesBuyNeutral
Aug 2017Stephens & Co.DowngradesOverweightEqual-Weight
Jul 2017JefferiesDowngradesBuyHold

View More Analyst Ratings for RICE
View the Latest Analyst Ratings

Posted-In: Citigroup Robert S. MorrisAnalyst Color Initiation Analyst Ratings


Related Articles (RICE)

View Comments and Join the Discussion!