Permian Resources Corp (PR) PT Lowered to $22 at Raymond James

Raymond James analyst John Freeman lowered the price target on Permian Resources Corp (NYSE: PR) to $22.00 (from $23.00) while maintaining a Strong Buy rating.

The analyst commented: "We are updating our estimates post 2Q results. As mentioned in our 2Q25 Quick Take, Permian Resources (PR) posted another steady quarter, with production arriving ~2% above RJ/Street estimates. PR raised 2025 production guidance by ~3% reflecting the closing of the APA bolt-on acquisition and strong well results, with PR seeing a ~2% improvement in standalone oil volumes. RJ 3Q production of ~391.9 Mboe/d (181.0 Mbbl/d) and capex of ~$482.0M are in-line with the Street. We’re now modeling 2025 production of ~386.1 Mboe/d (178.5 Mbbl/d) and capex of ~$1.965B, in-line with guidance/Street. RJE 2026 production of ~396.8 Mboe/d (182.8 Mbbl/d) on spend of ~$1.986B are also roughly in-line. Additionally, PR should benefit from significantly lower cash taxes following OBBB. The company now expects current income tax of less than $5M in 2025 and less than $50M cumulatively in 2026 and 2027. In 2025/2026 we estimate a healthy FCF yield of ~12%/11% (FCF/EV) with the stock trading at ~3.7x/3.8x 2025E/2026E EV/EBITDA. Considering the valuation and the items detailed below we reiterate our Strong Buy rating but lower our target price to $22/share on a weaker commodity strip since our prior publication."

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