Permian Resources price target raised to $16 from $14 at Citi

Citi raised the firm’s price target on Permian Resources (PR) to $16 from $14 and keeps a Buy rating on the shares following the announced acquisition of Earthstone Energy (ESTE). The analyst expects the market to continue to give preference to those operators with scale and the ability to capture incremental improvements in operational efficiencies. On a pro-forma basis, this transaction “ticks both boxes” for Permian Resources, says Citi, which expects moderate multiple expansion for the shares in coming quarters.