Morgan Stanley has revised its price target for Antero Resources (AR, Financial), reducing it from $58 to $47 while maintaining an Overweight rating on the stock. This adjustment comes as part of a broader evaluation of the North American energy sector, where the firm has updated its forecasts to incorporate recent oil price declines. As a result, the cash flow predictions for 2025-26 fall below market consensus expectations.
Amid an uncertain economic environment, Morgan Stanley has adjusted its approach, assuming a greater discount to net asset value implied multiples, especially for small to mid-cap producers and companies facing execution challenges. The firm continues to hold an In-Line view on the exploration and production (E&P) industry given the ongoing softness in oil fundamentals over the near-to-medium term.
