- Southwestern Energy (SWN +3.4%) shoots higher after BMO Capital upgrades shares to Outperform from Market Perform with an $18 price target, based on valuation compared with other natural gas-focused drillers and the fundamental strength of the company's near-term business prospects.
- BMO says it sees SWN as affording relatively inexpensively priced exposure to natural gas, backed by a strong balance sheet thanks in part to proceeds from asset sales and equity raises.
- BMO believes SWN is generating some of the best debt-adjusted production and cash flow growth in the group, which contributes to improved corporate-level returns and a stronger balance sheet.