UBS analyst Josh Silverstein upgraded Permian Resources to Buy from Neutral with a price target of $21, up from $20. The analyst sees two positive catalysts in the second half of 2024 to drive shares higher: upside to fiscal UBS’s 2024 oil production forecast, driven by improved operations, along with an increase to the $225M synergies from the Earthstone Energy acquisition, the analyst tells investors in a research note. The firm sees these catalysts, coupled with the recent 15% pullback in shares, creating a favorable buying opportunity in the shares. It believes Permian’s larger scale and 7.8% estimated 2025 return of capital yield also supporting a positive re-rating of the stock.
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