Analyst Jeremy Mccrea of BMO Capital reiterated a Hold rating on Parex Resources (PARXF – Research Report), retaining the price target of $16.00.
Jeremy Mccrea has given his Hold rating due to a combination of factors impacting Parex Resources. The company has faced challenges in Colombia, including regulatory hurdles, exploration risks, and social unrest, which have historically warranted a cautious approach. Despite these challenges, Parex’s recent production results have been less than impressive, disrupting a previously successful track record. However, the reaffirmation of 2025 guidance and a reserve report that reflects past negative revisions suggest a potential for stability moving forward.
While the current valuation of Parex Resources appears attractive and could draw in new investors over time, the pending results from upcoming well operations keep the outlook neutral. The company’s profitability metrics, such as the PDP reserve value and capital spending, indicate that management is not fully capitalizing on its investments, which adds to the cautious stance. Overall, the Hold rating reflects a balance between the potential for future growth and the existing uncertainties in the operational environment.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a C$16.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PARXF in relation to earlier this year.