Mizuho Securities analyst William Janela has reiterated their bullish stance on PR stock, giving a Buy rating yesterday.
William Janela has given his Buy rating due to a combination of factors including Permian Resources’ stronger than expected 2025 outlook, which features oil volume guidance approximately 3% above consensus while maintaining capital expenditure in line with expectations. This indicates a moderate growth in oil production and improved capital efficiencies driven by reductions in well costs. Additionally, the company has demonstrated strong execution in managing operating costs, with cash operating expenses projected to be flat or slightly lower year-over-year, setting it apart from its peers.
Permian Resources also benefits from its pure-play exposure to the Permian Basin, moderate oil growth, and an attractive base dividend yield of approximately 4.5%. The reduction of private equity sponsor overhang since the end of 2023 further enhances its investment appeal. The company’s financial performance in the fourth quarter of 2024 exceeded expectations in terms of earnings and free cash flow, supporting a positive outlook for 2025. These factors combined with the valuation metrics suggest that the stock is trading at a discount compared to its peers, justifying the Buy recommendation.
Janela covers the Energy sector, focusing on stocks such as Northern Oil And Gas, APA, and Civitas Resources. According to TipRanks, Janela has an average return of 14.7% and a 43.33% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $19.00 price target.