Here's Why Range Resources Corp.'s Stock Is Sinking Today
Shares of Range Resources (NYSE: RRC) sank on Friday and were down more than 10% at 2:30 p.m. EDT. Fueling the sell-off was a downgrade by Goldman Sachs, which cut its rating from buy to neutral.
Not only did the Wall Street bank lower its rating but it also slashed its price target, cutting it from $35 all the way down to $20.50 per share. Driving the decision to downgrade is Goldman Sachs' view that Range Resources lacks exposure to improving local Appalachian prices, which it sees as a negative for the stock. Incidentally, it also downgraded fellow gas producer Rice Energy (NYSE: RICE) today, which also saw its rating fall from buy to neutral. That move, however, was due more to valuation since Rice Energy had outperformed rivals after jumping more than 25% this year on the heels of EQT Corp.'s (NYSE: EQT) agreement to acquire the company.
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Source: Fool.com