UPDATE: Goldman Sachs Color on Range Resources Initiation

Goldman Sachs, which initiated coverage of Range Resources Corporation (NYSE: RRC), is providing some color on the stock.

“We view favorably Range's top-tier assets (largely SW PA) and leading resource inventory,” Goldman Sachs writes. “However, we initiate with a Neutral rating as for now we believe RRC's existing premium multiple is less likely to expand. We see 14% upside to a $63 6-month DCF-/multiples-based target price.

“We believe until gas price sentiment improves (or shares pull back) the Street will focus on companies that can grow without their budgets meaningfully exceeding cash flow – this presently favors Cabot relative to Range.”

Range Resources closed Tuesday at $55.92.