Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Susquehanna analyst Biju Perincheril upgraded Permian Resources Corp (NYSE: PR) stock rating from Neutral to Positive. The firm also increased the price target for the company’s shares from $17.00 to $20.00. The upgrade reflects the analyst’s view that the company presents an attractive risk/reward profile following a recent pullback in its stock price. Trading at $12.55, the stock has declined over 10% in the past week and appears undervalued according to InvestingPro analysis, with analyst targets ranging from $14 to $23.
Perincheril praised Permian Resources for its successful scale build-up through mergers and acquisitions over the years. He also noted significant improvements in capital efficiency, including reductions in drilling and completion (D&C) costs, enhanced well productivity, and a decline in base decline rates.
The analyst pointed out that Permian Resources is currently trading at a discount compared to its peers, with a P/E ratio of just 8.27x. This valuation gap, combined with the company’s recent operational advancements, has led to the positive reassessment of the stock by Susquehanna. For comprehensive valuation analysis and detailed financial metrics, investors can access the full Pro Research Report on InvestingPro.
Perincheril’s commentary highlighted the strategic moves made by Permian Resources, saying, "Over the years, PR has successfully built scale with M&A activity, while also significant improvements in capital efficiency with improvements in D&C costs, well productivity, and base decline. Meanwhile, stock’s trading at a discount to peers. As such, with the recent pull back, we think PR offers attractive risk/reward, and thus upgrading our rating to Positive with a price target of $20."
Permian Resources Corp is now positioned with a Positive outlook from Susquehanna, indicating a favorable stance from the firm based on the company’s operational performance and market valuation. The new price target of $20.00 represents an increased level of confidence in the potential for the company’s share price to grow.
In other recent news, Permian Resources Corp reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.29, which fell short of the forecasted $0.35. The company’s revenue also missed expectations, coming in at $1.3 billion against a forecast of $1.32 billion. Despite these misses, Permian Resources achieved record free cash flow per share and maintained a strong liquidity position with $3 billion, including $500 million in cash. Citi analysts responded by adjusting their price target for Permian Resources’ stock to $17.00 from the previous $18.00, while maintaining a Buy rating. The analysts noted potential for increased production due to improved drilling efficiency and the use of longer laterals. They also highlighted the company’s ability to manage expenses effectively amidst market volatility. Looking ahead, Permian Resources projects an 8% growth in oil production for 2025 and plans to drill approximately 285 wells. The company aims to maintain its competitive edge with a focus on cost efficiency and strategic investments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.