Southwestern Energy to Benefit from Forecasted Strong Natural Gas Prices – Truist

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Truist Securities upgraded shares of Southwestern Energy (NYSE:SWN) to Buy from Hold, raising the price target to $11 from $7 per share.

Analysts there told investors in a research memo that Southwestern has “ample takeaway capacity,” positive upcoming financials, and efficient operations that will allow it to take advantage of the continued strong natural gas prices the firm forecasts.

“Specifically, we believe dry gas prices have the potential for a ‘super-spike’ this winter and next year as upticks in demand may be met with limited incremental supply, causing prices to spike to what the market will dictate in certain regions,” they wrote.

In addition, the Truist analysts are “surprised” the shares have only appreciated the same as the firm’s coverage group in 2022 despite ample catalysts, which they believe provide an opportune entry point.

Southwestern shares are up more than 7% at the time of writing.