Pioneer Natural Resources (PXD) Price Target Raised 80% at FBR

May 6, 2013 7:59 AM EDT
Get Alerts PXD Hot Sheet
Price: $184.97 +0.55%

Rating Summary:
    33 Buy, 9 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Analysts at FBR Capital dramatically raised their price target on Outperform-rated Pioneer Natural Resources (NYSE: PXD) Monday from $125 to $225 saying the company's Norther acerage needs to be revalued higher.

Analyst Rehan Rashid said, "We believe that planned drilling activity in the next 12-18 months could significantly de-risk a substantial portion of Pioneer's Midland Basin acreage. The de-risking should materially improve understanding of geological prospectivity as well as firmly establish a dramatically improved cost structure."

He continued, "We believe that successful de-risking should bring with it a significant step change in valuation. Our analysis of Permian geology leads us to the conclusion that risk/reward is significantly skewed toward a favorable outcome."

The firm is raising their 3P NAV to $455 per share from $193 per share, with the new price target based on about 50% of 3P NAV.

For an analyst ratings summary and ratings history on Pioneer Natural Resources click here. For more ratings news on Pioneer Natural Resources click here.

Shares of Pioneer Natural Resources closed at $129.64 yesterday.

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