TD Cowen analyst David Deckelbaum maintained a Buy rating on Permian Resources yesterday and set a price target of $19.00.
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David Deckelbaum has given his Buy rating due to a combination of factors that highlight Permian Resources’ strong performance and strategic positioning. The company demonstrated impressive execution in the third quarter, surpassing expectations with a 4% increase in total production and a notable 8% and 24% rise in EBITDAX and free cash flow, respectively. These results were driven by robust well performance and efficiency improvements, allowing Permian Resources to raise its full-year production guidance by 2% without increasing capital expenditures.
Additionally, the company’s strategic acquisitions of net leasehold and royalty acres in New Mexico have bolstered its core position in the Northern Delaware Basin. With new marketing contracts to enhance exposure to lucrative markets and a plan to reduce natural gas exposure to Waha, Permian Resources is positioned to improve pricing and achieve significant free cash flow uplift. These factors collectively underpin Deckelbaum’s positive outlook and Buy rating for the stock.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PR in relation to earlier this year.