Update (9:41 a.m.): Updated with Thursday market open information.
NEW YORK (TheStreet) -- Goldman Sachs upgraded Range Resources (RRC) to "buy" from "neutral," set a $110 price target and added the stock to its Conviction List. The firm noted the company will likely realize higher Marcellus gas results.
The stock was up 0.75% to $89.75 at 9:40 a.m. on Thursday.
Separately, TheStreet Ratings team rates RANGE RESOURCES CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RANGE RESOURCES CORP (RRC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 43.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RANGE RESOURCES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RANGE RESOURCES CORP increased its bottom line by earning $0.70 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $0.70).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 143.0% when compared to the same quarter one year prior, rising from -$75.61 million to $32.52 million.
- The gross profit margin for RANGE RESOURCES CORP is rather high; currently it is at 65.15%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.09% is above that of the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: RRC Ratings Report