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UPDATE: Sterne Agee Downgrades Pioneer Natural Resources on Weakening Earnings Growth Outlook

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In a report published Wednesday, Sterne Agee analyst Tim Rezvan downgraded the rating on Pioneer Natural Resources (NYSE: PXD) from Buy to Neutral, and removed the $206.00 price target.

In the report, Sterne Agee noted, “The sharp divergence between NAV upside and Pioneer's medium-term earnings growth outlook causes us to review our stance on PXD shares. Simply stated, we are not NAV disciples. We believe that at some point, extreme valuations matter for E&P stocks, and that point is now for Pioneer. On an EV/EBITDA basis, PXD shares trade at 11.5x 2014E EBITDA of $2.77 billion, second highest among domestic E&Ps. A ‘best in class' multiple is warranted, but we struggle to see multiple expansion from here.”

Pioneer Natural Resources closed on Tuesday at $210.36.

Latest Ratings for PXD

DateFirmActionFromTo
Jul 2015Credit SuisseAssumesOutperform
Jul 2015KeyBancMaintainsOverweight
Jul 2015Morgan StanleyUpgradesEqual-weightOverweight

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Posted-In: Sterne Agee Tim RezvanAnalyst Color Downgrades Analyst Ratings

 

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