UPDATE: Credit Suisse Initiates Pioneer Natural Resources to Outperform on Horizontal Drilling Exposure

Credit Suisse initiated coverage on Pioneer Natural Resources Company

with an Outperform rating and a $150.00 price target. Credit Suisse noted, "We initiate coverage of PXD with an Outperform and a $150 target price, assuming parity with our NAV. PXD's Permian Basin footprint is poised to deliver top quartile cash flow and oil volume growth on a debt adjusted basis. We see significant optionality to the mix shift towards horizontal drilling. … The shares have rerated on the back of outstanding wells results in the EF and Permian, including the successful deepening of the vertical Spraberry and a much better than expected valuation for its JV transaction with Sinochem for its 200,000 acreage position in Southern Midland." Pioneer Natural Resources closed at $128.50 on Tuesday.