UPDATE: Bank of America Raises PT on Pioneer Natural Resources Following CEO Road Trip
In a report published Monday, Bank of America analyst Doug Leggate reiterated a Buy rating on Pioneer Natural Resources (NYSE: PXD), and raised the price target from $165.00 to $200.00.
In the report, Bank of America noted, “We spent a few days on the road with Pioneer's CEO. We continue to be struck by the sheer scale of the resource potential under its ~900,000 net acres in the Permian Midland basin. Recognizing a confirmed pace of development that plans to increase the horizontal rig count 5x in as many years, we are raising our PO to $200 from $165 and our earnings estimates also move higher. On a 12 month view this is a level that preserves the current multiple, but leaves material potential upside to a risked NAV that by our analysis could lie north of $300/sh. Moreover, we believe the pace of growth weighted 75% towards oil could exceed the high end of current guidance of ~13%-18% annually through 2015.”
Pioneer Natural Resources closed on Friday at $146.62.
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