Permian Resources initiated with an Outperform at Scotiabank

Scotiabank analyst Paul Cheng initiated coverage of Permian Resources (PR) with an Outperform rating and $21 price target The company is positioned for greater free cash flow growth and has a deeper inventory relative to peers, the analyst tells investors in a research note. The firm finds Permian’s valuation attractive at current share levels. With 15 years of “high-quality” inventory, Permian is on the longer end of the 10- to 12-year average across most exploration and production companies, contends Scotiabank.