Analyst Says Cabot Oil & Gas Set For Strong Growth

NEW YORK (AP) — Natural gas producer Cabot Oil & Gas Corp. is positioned for strong production and earnings growth, an analyst said Friday.

UBS analyst Andrew Coleman raised his share price target by $16 to $40. He said the company's increased activity in the Marcellus shale region should push production growth beyond his current outlook of 6 percent, with a burst of growth in 2010.

Coleman rates Cabot "Buy."

"Running a company in the exploration and production sector should always be about blending growth and returns, and we think Cabot represents one of the best blends of both," Coleman said.

Shares of Cabot fell 41 cents to $35.18 in afternoon trading.