Morgan Stanley Raises Range Resources Price Target to $48
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy RRC?
Source: Yahoo Finance
- Price Target Increase: Morgan Stanley analyst Devin McDermot raised the price target for Range Resources from $40 to $48 while maintaining an Equal Weight rating, reflecting confidence in the company's future performance.
- Market Trend Analysis: The analyst noted that oil, LNG, and refining margins have reached their highest levels since 2022, and despite de-escalation in Iran, it is unlikely that these markets will revert to their previous state anytime soon, indicating sustained strength in the industry.
- Price Forecast Update: Morgan Stanley updated its price deck, projecting a 44% increase in the 2026 WTI benchmark, a 40% rise in NGL prices, and a 35% increase in crack spreads, which will positively impact Range Resources' profitability.
- EBITDA Expectations Raised: The firm's EBITDA estimates across its North America energy coverage are rising by about 40% for 2026 and 23% for 2027 on average, suggesting growing optimism in the energy sector that could drive Range Resources' stock price higher.
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Analyst Views on RRC
Wall Street analysts forecast RRC stock price to fall
16 Analyst Rating
3 Buy
12 Hold
1 Sell
Hold
Current: 46.210
Low
36.00
Averages
42.00
High
48.00
Current: 46.210
Low
36.00
Averages
42.00
High
48.00
About RRC
Range Resources Corporation is an independent natural gas and natural gas liquids (NGLs) producer. The Company is engaged in the exploration, development and acquisition of natural gas and oil properties in the Appalachian region of the United States. Its principal area of operations is the Marcellus Shale in Pennsylvania. Its properties consist of interests in developed and undeveloped natural gas and oil leases. It owns approximately 1,431 net producing wells in Pennsylvania. It holds a portfolio of drilling opportunities and unbooked resource potential within the Marcellus, Utica/Point Pleasant and Upper Devonian formations. Its exploration and production operations are limited to the onshore United States. It has approximately 871,000 gross (763,000 net) acres under lease. Its subsidiaries include Range Resources-Appalachia, LLC, Range Resources-Pine Mountain, LLC, Range Production Company, LLC, Range Resources-Midcontinent, LLC and Range Resources-Louisiana, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Raises Range Resources Price Target to $48
- Price Target Increase: Morgan Stanley analyst Devin McDermot raised the price target for Range Resources from $40 to $48 while maintaining an Equal Weight rating, reflecting confidence in the company's future performance.
- Market Trend Analysis: The analyst noted that oil, LNG, and refining margins have reached their highest levels since 2022, and despite de-escalation in Iran, it is unlikely that these markets will revert to their previous state anytime soon, indicating sustained strength in the industry.
- Price Forecast Update: Morgan Stanley updated its price deck, projecting a 44% increase in the 2026 WTI benchmark, a 40% rise in NGL prices, and a 35% increase in crack spreads, which will positively impact Range Resources' profitability.
- EBITDA Expectations Raised: The firm's EBITDA estimates across its North America energy coverage are rising by about 40% for 2026 and 23% for 2027 on average, suggesting growing optimism in the energy sector that could drive Range Resources' stock price higher.
See More
Analysis of Money Flows in Magnificent Seven Stocks
- Money Flow Trends: In early trading, negative money flows were observed in the Magnificent Seven stocks, including Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla, indicating a lack of short-term confidence in these stocks, which may lead investors to reassess their positions.
- ETF Performance Weakness: The SPDR S&P 500 ETF and Invesco QQQ Trust also showed negative money flows, reflecting a general market sentiment downturn, which could lead investors to adopt a cautious stance on tech stocks, impacting the liquidity and pricing of related ETFs.
- Bitcoin Market Volatility: Bitcoin initially dropped following news of the Iran war but rebounded on the announcement of Ayatollah Khamenei's death, highlighting the cryptocurrency market's sensitivity to geopolitical events, prompting investors to monitor how such events influence market sentiment.
- Investment Strategy Recommendations: Investors are advised to maintain long-term quality positions while tactically adding to their investments based on market signals to navigate current uncertainties, ensuring the stability and growth potential of their portfolios.
See More
Range Resources Declares 11.1% Increase in Quarterly Dividend
- Dividend Increase: Range Resources has declared a quarterly dividend increase from $0.09 to $0.10 per share, representing an 11.1% rise, which reflects the company's strong cash flow management and aims to bolster investor confidence.
- Yield Metrics: The forward yield of 1.02% not only provides shareholders with a stable return but also has the potential to attract more income-seeking investors, thereby enhancing the stock's market performance.
- Payment Schedule: The new dividend will be payable on March 27, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive their earnings promptly and further solidifying the relationship between the company and its investors.
- Future Cash Flow Outlook: Range Resources projects approximately $500 million in free cash flow for 2026, alongside a capital budget of $650 million to $700 million, targeting a production rate of 2.35 to 2.4 Bcfe per day, indicating confidence in the company's growth potential moving forward.
See More
Range Resources Q4 2025 Earnings Call Insights
- Strong Financial Performance: Range Resources reported $1.3 billion in cash flow from operations and over $650 million in free cash flow for Q4 2025, demonstrating the company's ongoing ability to allocate capital effectively and return value to shareholders, with expectations for continued growth.
- Production and Investment Outlook: Projected capital spending for 2026 is between $650 million and $700 million, with production targets set at 2.35 to 2.4 Bcfe per day, indicating the company's flexibility in response to market dynamics and emphasis on long-term contracts.
- Operational Efficiency Gains: The company drilled 69 laterals in 2025 with an average horizontal length of 14,800 feet and completed nearly 3,800 frac stages, achieving a new efficiency benchmark of 9.7 stages per day, enhancing its resource development capabilities.
- Shareholder Return Strategy: Range paid $86 million in dividends and executed $231 million in share repurchases in 2025, with the board increasing the share repurchase program capacity to $1.5 billion, reflecting a strong commitment to shareholder returns.
See More
Major Earnings Reports Expected After Tuesday's Close
- Major Earnings Preview: After the market closes on Tuesday, Realty Income Corporation (O), Lucid Group (LCID), MercadoLibre (MELI), and First Solar (FSLR) are set to report earnings, with market participants keenly awaiting their performance and future guidance.
- Diverse Earnings Releases: In addition to these companies, others such as ABCL, ALC, and ATEC are also expected to release earnings after Tuesday's close, indicating a broad interest across various sectors that could influence investor sentiment.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports, particularly regarding the achievement of profit expectations, which will directly impact the stock price volatility of the respective companies and overall market confidence.
- Significance of Earnings Season: The earnings season serves as a critical period for investors to assess the financial health and future growth potential of companies, with market reactions to these reports potentially shaping overall market trends.
See More
Market Risks Intensify as Tech Stocks Continue to Decline
- Tech Stock Underperformance: The Nasdaq dropped 2.10% last week, while the S&P 500 and Dow Jones fell by 1.39% and 1.23%, respectively, indicating growing concerns over tech stocks that could lead to decreased investor confidence.
- Mixed Employment Data: The January 2026 nonfarm payrolls rose by 130,000, surpassing expectations of 55,000; however, revisions for 2025 revealed only 181,000 jobs were created, highlighting labor market weaknesses that may influence Federal Reserve policy decisions.
- Market Correction Dynamics: The Nasdaq has been undergoing a time-based correction since late October, with an 8-9% pullback in November, yet remains range-bound, reflecting market hesitation and uncertainty that could set the stage for future gains.
- Increasing Risk Signals: A growing list of market risk signals, particularly the declining ratio of stocks to bonds, suggests a waning investor appetite for risk assets, potentially leading to further deterioration in market sentiment.
See More
Morgan Stanley Raises Range Resources Price Target to $48
- Price Target Increase: Morgan Stanley analyst Devin McDermot raised the price target for Range Resources from $40 to $48 while maintaining an Equal Weight rating, reflecting confidence in the company's future performance.
- Market Trend Analysis: The analyst noted that oil, LNG, and refining margins have reached their highest levels since 2022, and despite de-escalation in Iran, it is unlikely that these markets will revert to their previous state anytime soon, indicating sustained strength in the industry.
- Price Forecast Update: Morgan Stanley updated its price deck, projecting a 44% increase in the 2026 WTI benchmark, a 40% rise in NGL prices, and a 35% increase in crack spreads, which will positively impact Range Resources' profitability.
- EBITDA Expectations Raised: The firm's EBITDA estimates across its North America energy coverage are rising by about 40% for 2026 and 23% for 2027 on average, suggesting growing optimism in the energy sector that could drive Range Resources' stock price higher.
See More
Analysis of Money Flows in Magnificent Seven Stocks
- Money Flow Trends: In early trading, negative money flows were observed in the Magnificent Seven stocks, including Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla, indicating a lack of short-term confidence in these stocks, which may lead investors to reassess their positions.
- ETF Performance Weakness: The SPDR S&P 500 ETF and Invesco QQQ Trust also showed negative money flows, reflecting a general market sentiment downturn, which could lead investors to adopt a cautious stance on tech stocks, impacting the liquidity and pricing of related ETFs.
- Bitcoin Market Volatility: Bitcoin initially dropped following news of the Iran war but rebounded on the announcement of Ayatollah Khamenei's death, highlighting the cryptocurrency market's sensitivity to geopolitical events, prompting investors to monitor how such events influence market sentiment.
- Investment Strategy Recommendations: Investors are advised to maintain long-term quality positions while tactically adding to their investments based on market signals to navigate current uncertainties, ensuring the stability and growth potential of their portfolios.
See More
Range Resources Declares 11.1% Increase in Quarterly Dividend
- Dividend Increase: Range Resources has declared a quarterly dividend increase from $0.09 to $0.10 per share, representing an 11.1% rise, which reflects the company's strong cash flow management and aims to bolster investor confidence.
- Yield Metrics: The forward yield of 1.02% not only provides shareholders with a stable return but also has the potential to attract more income-seeking investors, thereby enhancing the stock's market performance.
- Payment Schedule: The new dividend will be payable on March 27, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive their earnings promptly and further solidifying the relationship between the company and its investors.
- Future Cash Flow Outlook: Range Resources projects approximately $500 million in free cash flow for 2026, alongside a capital budget of $650 million to $700 million, targeting a production rate of 2.35 to 2.4 Bcfe per day, indicating confidence in the company's growth potential moving forward.
See More
Range Resources Q4 2025 Earnings Call Insights
- Strong Financial Performance: Range Resources reported $1.3 billion in cash flow from operations and over $650 million in free cash flow for Q4 2025, demonstrating the company's ongoing ability to allocate capital effectively and return value to shareholders, with expectations for continued growth.
- Production and Investment Outlook: Projected capital spending for 2026 is between $650 million and $700 million, with production targets set at 2.35 to 2.4 Bcfe per day, indicating the company's flexibility in response to market dynamics and emphasis on long-term contracts.
- Operational Efficiency Gains: The company drilled 69 laterals in 2025 with an average horizontal length of 14,800 feet and completed nearly 3,800 frac stages, achieving a new efficiency benchmark of 9.7 stages per day, enhancing its resource development capabilities.
- Shareholder Return Strategy: Range paid $86 million in dividends and executed $231 million in share repurchases in 2025, with the board increasing the share repurchase program capacity to $1.5 billion, reflecting a strong commitment to shareholder returns.
See More
Major Earnings Reports Expected After Tuesday's Close
- Major Earnings Preview: After the market closes on Tuesday, Realty Income Corporation (O), Lucid Group (LCID), MercadoLibre (MELI), and First Solar (FSLR) are set to report earnings, with market participants keenly awaiting their performance and future guidance.
- Diverse Earnings Releases: In addition to these companies, others such as ABCL, ALC, and ATEC are also expected to release earnings after Tuesday's close, indicating a broad interest across various sectors that could influence investor sentiment.
- Market Reaction Anticipation: Investors will closely monitor the outcomes of these earnings reports, particularly regarding the achievement of profit expectations, which will directly impact the stock price volatility of the respective companies and overall market confidence.
- Significance of Earnings Season: The earnings season serves as a critical period for investors to assess the financial health and future growth potential of companies, with market reactions to these reports potentially shaping overall market trends.
See More
Market Risks Intensify as Tech Stocks Continue to Decline
- Tech Stock Underperformance: The Nasdaq dropped 2.10% last week, while the S&P 500 and Dow Jones fell by 1.39% and 1.23%, respectively, indicating growing concerns over tech stocks that could lead to decreased investor confidence.
- Mixed Employment Data: The January 2026 nonfarm payrolls rose by 130,000, surpassing expectations of 55,000; however, revisions for 2025 revealed only 181,000 jobs were created, highlighting labor market weaknesses that may influence Federal Reserve policy decisions.
- Market Correction Dynamics: The Nasdaq has been undergoing a time-based correction since late October, with an 8-9% pullback in November, yet remains range-bound, reflecting market hesitation and uncertainty that could set the stage for future gains.
- Increasing Risk Signals: A growing list of market risk signals, particularly the declining ratio of stocks to bonds, suggests a waning investor appetite for risk assets, potentially leading to further deterioration in market sentiment.
See More
