Permian Resources initiated with a Neutral, $15 price target at BofA

As previously reported, BofA initiated coverage of Permian Resources with a Neutral rating and $15 price target. The product of the late 2022 merger of equals of privately-held Colgate and public Centennial then was lifted into the large cap E&P universe with the late 2023 Earthstone Energy acquisition, the analyst noted. As a larger company with a strong execution history, BofA sees Permian attracting investors in a competitive sector, but the stock has significantly outperformed the Russell 3000 Energy Index so the firm sees limited upside remaining in its base case and sees fair value “around” $15 per share.