Imperial Capital Raises Price Target on Parsley Energy (PE) to $42
- S&P, Dow rise on health stocks; Nasdaq weighed by Comcast
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Qualcomm (QCOM) to Acquire NXP Semi (NXPI) in $47B Deal
- Tesla (TSLA) Posts Q3 adj.-EPS of 71c
- Pre-Open Stock Movers 10/27: (PRQR) (OCN) (TWTR) Higher; (CYH) (GNC) (RNWK) Lower (more...)
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Imperial Capital reiterated an Outperform rating on Parsley Energy (NYSE: PE), and raised the price target to $42.00 (from $40.00), following the company's announcement of a $400mn PSA to acquire 11,672 (9,140 net) acres in the core of the Midland Basin. Imperial Capital views the acquisition positively and believes that it is immediately accretive to PE’s NAV and PE was able to execute on the transaction without straining liquidity.
Analyst Kim Pacanovsky commented, "On 8/15/16, PE announced a $400mn PSA to acquire 11,672 (9,140 net) acres in western Glasscock County, Texas, in the core of the Midland Basin. The acquired leasehold package is largely contiguous and in close proximity to PE’s existing Glasscock County acreage, with Diamondback (FANG) and RSP Permian (RSPP) as likely offset operators. Financed by an upsized $243.2mn equity offering and additional $200mn of debt tacked onto PE’s existing 6.25% senior unsecured notes, we believe that the acquisition is immediately accretive to PE’s RNAV owing to the combined drilling inventory boost (approximately 215 net locations) as well as mineral and overriding royalty interests improving PE’s NRI by around 5%."
Shares of Parsley Energy closed at $33.74 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Parexel (PRXL) to $67 Following Weak 1Q
- Jefferies Raises Price Target on Northrop Grumman (NOC) Following 3Q Beat
- PAREXEL (PRXL) PT, Estimates Lowered at Evercore ISI
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesDefinitive Agreement, Equity Offerings, Imperial Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!