JPMorgan downgraded Range Resources (NYSE: RRC) to Underweight from Neutral and cut its price target to $39 from $44, saying the company's relative valuation had become less compelling amid a more cautious outlook for NGL fundamentals. As a result, shres fell over 3% intra-day on Monday.

The analyst said both Range and Antero had indicated that their premium pricing relative to Mont Belvieu benchmarks would likely compress next year as Gulf Coast dock capacity expands. Although the increased capacity could support stronger overall benchmark pricing, JPMorgan said it removed a key competitive advantage previously held by producers with Marcus Hook exposure.

Despite maintaining a favorable view of Range's management, operational performance and multi-year development strategy, JPMorgan argued the company's valuation now sat at a premium versus peers based on current strip pricing. The firm estimated 2026-27 free cash flow yields of 8.7% and 8.8% for Range, versus 9.5% and 9.8% for the broader E&P group and 11.0% and 11.3% for gas-focused producers.

The $39 price target reflected these dynamics and the firm's more cautious commodity outlook.