Morgan Stanley has adjusted its price target for Permian Resources (PR, Financial), reducing it from $19 to $16, while maintaining an "Overweight" rating on the shares. This revision is part of a broader update across the firm's North American energy sector coverage, reflecting recent decreases in oil prices.
The financial firm has also revised its 2025-26 cash flow projections, aligning them below the prevailing market consensus. This shift stems from a more cautious approach due to current market uncertainties. Consequently, Morgan Stanley is now applying a larger discount to the net asset value multiples for smaller and mid-sized producers, especially those facing execution challenges.
In light of sluggish oil fundamentals in the short to medium term, Morgan Stanley maintains an "In-Line" view of the Exploration and Production (E&P) industry. This conservative stance reflects the expectation of continued volatility and underscores the firm's adjusted forecasts and valuation approaches.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Permian Resources Corp (PR, Financial) is $18.55 with a high estimate of $23.00 and a low estimate of $14.00. The average target implies an upside of 69.64% from the current price of $10.94. More detailed estimate data can be found on the Permian Resources Corp (PR) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Permian Resources Corp's (PR, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Permian Resources Corp (PR, Financial) in one year is $13.42, suggesting a upside of 22.73% from the current price of $10.935. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Permian Resources Corp (PR) Summary page.
