Permian Resources initiated with a Buy at Benchmark

Benchmark initiated coverage of Permian Resources with a Buy rating and $14 price target. The stock is undervalued given the company’s low-cost structure, Delaware concentration, disciplined strategy, free cash flow focus, and enviable track record as a private company, the analyst tells investors in a research note. Permian Resources should be able to address sticky inflation by further reducing activity levels, which is the “more rational approach” than the growth pursued by some of its competitors, Benchmark added.