Market Overview

Canaccord Raises Pioneer Natural Resources' PT As Growth Factors Solidify, But Stock Is Tumbling

Share:
Canaccord Raises Pioneer Natural Resources' PT As Growth Factors Solidify, But Stock Is Tumbling

Canaccord's Sam Burwell raised his price target on Pioneer Natural Resources (NYSE: PXD) from $175.00 to $180.00.,/p>

"All ahead full" is Burwell's mantra on the stock. The company is set to add five rigs by the end of the year on top of the existing 12. The acquisition can be related to the "increased exposure at the prolific Sale ranch area in Martin County," Burwell stated. The acquisition is fully covered and will leave a balance of $500 million in capex for 2017. "PXD is a top pick given its inventory depth, growth profile and sterling balance sheet," Burwell noted.

Related Link: Goldman Sachs Explains Why These E&P Names Are Portfolio Musts

The company's guidance of 13 to 17 percent production growth is conservative in the analyst's view. He sees a 19 percent growth, up from a previous 13 percent. Capex guidance for 2016 is now $2.1 billion, up about $100,000, and $2.5 billion for 2017, up from $2.3 billion.

Pioneer Natural Resources plans to issue over 6 million in shares. As the company increases its equity Burwell estimates the company will exit 2017 with virtually no net debt. Shares of the company were trading down 5.72 percent at $153.26 at time of writing.

Latest Ratings for PXD

DateFirmActionFromTo
Jan 2021KeyBancMaintainsOverweight
Jan 2021KeyBancMaintainsOverweight
Jan 2021KeyBancMaintainsOverweight

View More Analyst Ratings for PXD
View the Latest Analyst Ratings

 

Related Articles (PXD)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Price Target Commodities Reiteration Markets Analyst Ratings Best of Benzinga