Permian Resources (PR – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Hanwen Chang from Wells Fargo maintained a Buy rating on the stock and has a $21.00 price target.
Hanwen Chang’s rating is based on Permian Resources’ strong positioning to handle a low oil price environment. The company’s cost structure and solid balance sheet enable it to remain proactive even if the broader market experiences a downturn, while other companies may need to scale back. Chang maintains an Overweight rating with a price target of $21, reflecting confidence in the company’s ability to generate significant free cash flow and maintain stable production levels.
Furthermore, Permian Resources is expected to see modest growth in oil production throughout 2025, with a stable oil ratio and stronger natural gas production in the first quarter. The company’s approach to managing macroeconomic uncertainty is disciplined and flexible, allowing it to adapt to potential price pressures without heavily relying on mergers and acquisitions. This strategic approach, combined with the company’s operational scale, supports the Buy rating given by Chang.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is neutral on the stock.