Permian Resources price target raised to $21 from $20 at Piper Sandler

Piper Sandler analyst Mark Lear raised the firm’s price target on Permian Resources (PR) to $21 from $20 and keeps an Overweight rating on the shares. The firm adjusted estimates and price targets across its exploration and production coverage coming out of the Q3 results. The analyst continues to see a trend of upstream “doing more with less” and projects pro-forma low single-digit oil growth in fiscal 2025, driven by mid-single-digit lower spending. While the macro outlook and investor sentiment is leaning toward gas equities, valuations remain more favorable for oil equities discounting a median $65 per barrel oil price compared to gas at $3.40, the analyst tells investors in a research note.