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Russian (RU) Sultan Khalid
Sat, May 17, 2025, 5:44 AM 2 min read
The global investment bank, RBC Capital, just raised its price target for Permian Resources Corporation (NYSE:PR). Here is why.
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin.
On May 16th, RBC Capital adjusted its outlook on Permian Resources Corporation (NYSE:PR), raising the stock's price target from $16 to $17, while reaffirming its Outperform rating. The analyst highlighted that PR's success hinges on enhancing operational efficiencies and engaging in accretive consolidation. Despite the intense market volatility, the oil and gas producer recently announced that it is growing its footprint in the northern Delaware Basin through a $608 million acquisition of assets from Apache parent APA Corp. Hence, Permian's activity remains 'steady-as-she-goes' despite oil price weakness relative to the original budgeted levels.
Permian Resources Corporation (NYSE:PR) recently revealed very strong results for its Q1 2025, highlighted by strong operational performance and lower costs. The company beat profit, revenue, and output expectations and even managed to achieve the highest free cash flow per share in its history of $0.54 per share, driven by lower per unit cost and solid production performance. Moreover, the oil and gas firm has approximately 25% of its 2025 oil production hedged at a price just above $73 per barrel, allowing it to be more opportunistic during a downturn when investments can earn the highest return.
While we acknowledge the potential of PR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PR and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
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