BMO Capital is promoting Permian Resources stock on Investing.com’s earnings call
On Wednesday, Permian Resources Corp (NYSE:PR) had its stock rating upgraded from BMO Capital, from Market Perform to Outperform. The firm also set a new target price on the company’s stock at $21.00, indicating a positive outlook for the stock’s future performance.
This development comes as BMO Capital acknowledges Permian Resources’ extensive operations in the Delaware Basin and its proven track record in both execution and strategic integration and acquisitions.
These factors are considered drivers of continued growth both naturally and through acquisition. Additionally, the company believes that the company is able to deliver competitive capital gains.
BMO Capital’s analysis suggests that Permian Resources’ valuation remains attractive, especially given the company’s increased valuation. The outlook is in line with the company’s revised commodity deck, which adjusts West Texas Intermediate (WTI) price estimates for 2025 and 2026 to $81 and $83 per barrel, respectively.
Despite the cut ratings for WTI, BMO Capital still sees significant upside for Permian Resources, estimating around 30% upside potential for the company’s stock to reach its $21.00 target. This forecast depends on the company’s ability to maintain its strong performance and implement its strategic growth plans.
The price target adjustment and stock rating improvement reflect BMO Capital’s confidence in Permian Resources’ strategic position and its potential for continued capital growth. Analysis of this company indicates an investment profile that favors a company within the energy sector.
In other recent news, Permian Resources Corporation has seen significant progress. Major private equity partners have updated their subscription rights agreement, facilitating the monetization of common stock by EnCap Investments LP, Pearl Energy Investments, and Riverstone Investment Group LLC. Private Equity Stockholders have reduced their collective ownership from over 50% to approximately 16% since the company’s inception.
Permian Resources was also upgraded from Neutral to Buy by UBS analyst Josh Silverstein, who raised the price target to $21. This development is based on the expectation of two positive developments expected to occur in the second half of 2024, which could increase the performance of the company’s stock.
In addition, Citi reaffirmed its buy rating on Permian Resources, maintaining a $20.00 target price per share. Citi’s analysis suggests that Permian Resources is not expected to be a major consolidation target in the near to medium term, but will likely focus on large acquisitions that complement its existing operations.
Finally, RBC Capital updated their financial outlook on Permian Resources, increasing their target price to $20.00 from $17.00 previously, indicating a positive outlook for the company’s performance and potential. These recent changes may also be important to investors interested in Permian Resources.
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