Assessing Permian Resources: Insights From 14 Financial Analysts

Throughout the last three months, 14 analysts have evaluated Permian Resources PR, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $19.57, a high estimate of $24.00, and a low estimate of $16.00. This current average has increased by 5.5% from the previous average price target of $18.55.

Investigating Analyst Ratings: An Elaborate Study

The perception of Permian Resources by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Permian Resources. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Permian Resources compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Permian Resources's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Permian Resources's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Permian Resources analyst ratings.

Delving into Permian Resources's Background

Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization and development of oil and liquids-rich natural gas assets. The Company's assets and operations are primarily concentrated in the core of the Permian Basin, and its properties consist of large, contiguous acreage blocks located in West Texas and New Mexico.

Unraveling the Financial Story of Permian Resources

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Permian Resources's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 47.42%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Permian Resources's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 22.86%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 5.14%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Permian Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 2.12%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Permian Resources's debt-to-equity ratio stands notably higher than the industry average, reaching 0.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.