UPDATE: Stifel Nicolaus Downgrades Pioneer Natural Resources to Hold
Stifel Nicolaus lowers its rating on Pioneer Natural Resources (NYSE: PXD) to Hold from Buy as it believes valuation of the stock has reached fair value.
Stifel Nicolaus says, "PXD is trading at 6.7x 2012 EV/EBITDA vs the group at 6.0x. Our 12 month fair value range (based on EV/EBITDAs as well as P/NAVs) is $100-$110/sh, signifying not enough remaining upside in the coming 6-12 months, especially considering the downside risks to crude oil. We are expecting strong 2012 production growth when 2012 guidance is provided in the coming month. However, based on Stifel and consensus estimates, we believe that 25% production growth is already being expected. Furthermore, based on valuation, we believe that this growth is already being factored in the stock."
PDX closed at $100.09 a share yesterday.
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