UPDATE: Deutsche Bank Raises Target to $108 on Pioneer Natural Resources

Deutsche Bank reiterates its Hold rating on Pioneer Natural Resources (NYSE: PXD) and raises its price target to $108 from $103 a share on a growth production outlook.

Deutsche Bank says, "While 4Q production was in-line (previously disclosed), the highlight of the YE11 release was a 2012 outlook that calls for 25% production growth (mid-point) on a $2.5 Bn budget (ahead of our previous expectations of $2.4 Bn). The mix shift in the Permian is likely to see street NAVs move down modestly as a reduction in Spraberry vertical rig activity (30 from 41 rigs) and higher blended costs ($1.75 mm vs. $1.55 mm previously) is offset by more Wolfcamp activity and better productivity of deeper wells."

PXD closed at 105.74 a share yesterday.