Permian Resources stock rating reiterated at Buy by UBS on strong Q2

Published 11/08/2025, 15:30
Permian Resources stock rating reiterated at Buy by UBS on strong Q2

Investing.com - UBS has reiterated its Buy rating and $16.00 price target on Permian Resources Corp (NYSE:PR) following the company’s second-quarter 2025 performance. The stock, currently trading at $13.05, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $14 to $23.

UBS highlighted that Permian Resources delivered better-than-expected results in the quarter, with both EBITDAX and total production exceeding forecasts. The company reported robust EBITDA of $3.88 billion and an impressive 74% gross profit margin. The firm noted that near-term free cash flow is increasing due to improved capital efficiency and favorable tax conditions.

The investment bank pointed to Permian Resources’ evolution into a larger-scale operator, evidenced by its recent investment-grade rating and new gas and oil sales agreements that are expected to improve realized pricing for the company.

UBS identified the extraction of value from Permian Resources’ new New Mexico acreage as the next potential catalyst for the stock. The firm views this development as part of the company’s broader strategy to position itself as the leading consolidator in the Delaware Basin.

The positive assessment comes as Permian Resources continues to strengthen its operational footprint and financial position in the competitive U.S. shale market.

In other recent news, Permian Resources Corp disclosed its second-quarter 2025 financial results, which fell short of analyst expectations. The company reported earnings per share (EPS) of $0.27, missing the forecasted $0.29. Revenue for the quarter was $1.2 billion, slightly below the anticipated $1.23 billion. These results highlight a minor deviation from the projections made by analysts. While the earnings announcement did impact the stock price, those movements are not the focus here. Investors are likely to keep a close eye on Permian Resources as they navigate these recent developments.

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