UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on Southwestern Energy Company Following Marcellus/Utica Properties Acquisition

In a report published Friday, Morgan Stanley analyst Drew Venker reiterated an Underweight rating on

, but lowered the price target from $26.00 to $24.00. In the report, Morgan Stanley noted, “SWN announced the acquisition of Marcellus and Utica properties in SW Penn. and WV. Markets took the deal negatively, partially because SWN's plans to fund some of the acquisition with equity. Lowering our price target to $24 from $26 to reflect the acquisition and the deal dilution.Southwestern's acquisition of these properties provides it with higher quality drilling inventory, upside from the dry gas Utica, and additional flexibility in deploying capital.” Southwestern Energy Company closed on Thursday at $31.97.