What Do Analysts Expect for Southwestern Energy's 4Q15 Earnings?
Wall Street analysts’ ratings for Southwestern Energy
Currently, ~20% of Wall Street analysts rate Southwestern Energy (SWN) a “buy,” and ~72% of analysts rate it a “hold.” Around 8% of analysts rate the stock a “sell.” Analysts’ median target price for SWN is $10.20, which is ~20% higher than the closing price of $8.49 on February 18, 2016. Based on the median target prices from Wall Street analysts, upstream companies Pioneer Natural Resources (PXD), Murphy Oil (MUR), and Energen Corporation (EGN) have potential to rise ~23%, ~26%, and ~67%, respectively, from their closing prices on February 18, 2016. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.
SWN’s individual recommendations
As shown in above table, the most recent recommendation of “outperform” for SWN came from Bernstein on February 17, 2016. Bernstein has assigned SWN the highest target price of $24, which is ~183% higher than the closing price on February 18. Bernstein expects SWN to reach this target price within the next 12 months.
Morgan Stanley has assigned SWN the lowest target price of $3, which is ~65% lower than the closing price on February 18. Morgan Stanley issued its recommendation for SWN in the third week of January 2016 and expects SWN to reach the target price within the next 12 months.
Some of the positives for SWN as noted by Wall Street analysts are better production growth, a cost reduction focus, and potential for a meaningful increase if natural gas prices recover.
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