Market Overview

SunTrust Ups Rice Energy Target To $32, Sees 'Continued Growth'


In a report published Monday, SunTrust Robinson Humphrey analyst Neal Dingmann maintained a Buy rating on Rice Energy Inc (NYSE: RICE), while raising the price target from $30 to $32.

Growth at Rice Midstream Partners LP (NYSE: RMP) continues to be strong. Moreover, "likely incremental water dropdowns" following the recent peer approval continue to boost Rice Energy's midstream value, which is estimated at around $13 per share.

"Dropdowns to Rice Midstream Partners likely begin in early next year adding liquidity and accelerating the value of Rice's RMP GP stake. It appears Street consensus is conservative for Rice's 2016 EUR and production rate as well as liquidity profile given $400mm+ in likely dropdowns and continued upstream growth in operating cash flows that combined could put total cash flow 20%+ higher than the average Street estimate," analyst Neal Dingmann wrote.

With downspaced Utica wells remaining strong and Marcellus flow rates continuing to move north, Rice Energy continues to generate upstream growth. "Core Utica/Marcellus remains one of our top three plays with Rice one of our favorite Appalachian names," the report said.

Dingmann believes that the company is poised to beat its guidance for 2015 and grow at least by about 5 percent above the consensus expectation for 2016.

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


Related Articles (RICE + RMP)

View Comments and Join the Discussion!

Posted-In: SunTrust Robinson HumphreyAnalyst Color Price Target Reiteration Analyst Ratings

Latest Ratings

YEXTDA DavidsonMaintains20.5
BYDB of A SecuritiesMaintains47.0
SAICMorgan StanleyMaintains98.0
PVHMorgan StanleyMaintains104.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at