Wells Fargo Hikes Permian Resource's (PR) Price Target Buoyed by Differentiated Inventory

Permian Resources Corporation (NYSE:PR) is one of the best energy stocks to buy for the long term. On August 13, Wells Fargo reiterated an ‘Overweight’ rating on the stock and raised the price target to $21 from $20. The positive stance follows the company’s second-quarter results that were in line with the research firm’s estimates.

The company posted earnings per share of $0.27 and revenue of $1.2 billion. The Permian Basin maintains strong fundamentals, characterized by a 74% gross profit margin and an impressive revenue growth rate of 16.4% over the last 12 months.

Wells Fargo remains confident about Permian Resources’ long-term prospects, owing to its differentiated Permian inventory and sustained capital efficiencies. The research firm expects the company to achieve a free cash flow of $1.6 billion for the full year, reflecting assumptions of cost deflation and commodity price realizations.

Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company focused on acquiring, optimizing, and developing high-return oil and natural gas properties in the Permian Basin, with a particular emphasis on the Delaware Basin.

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Disclosure: None. This article is originally published at Insider Monkey.

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