Permian Resources initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Devin McDermott initiated coverage of Permian Resources (PR) with an Overweight rating and $19 price target amid a broader research note on the North American E&Ps. Permian Resources is differentiated by a high-quality asset base, capital efficient growth, and a low cost structure, supporting sustainable and growing free cash flow generation, the analyst tells investors in a research note. The firm sees upside to long-term value creation from further efficiency capture from continuous focus on cost reduction and potential opportunistic M&A.