Goldman Sachs Upgrades Parsley Energy (PE) to Neutral

Goldman Sachs upgraded Parsley Energy (NYSE: PE) from Sell to Neutral with a price target of $16.00 (from $13.00).

Analyst Brian Singer said, "We upgrade shares of PE, a Permian-basin pure-play, to Neutral from Sell within the context of our Neutral coverage view. Since adding to the Sell list on October 26, 2014, PE shares are down 17%, vs. EPX down 22% and S&P up 4%. Our 12-month price target of $16 (revised from $13) implies 12% upside, above the 7% average upside for our coverage. We continue to see the company relatively more vulnerable to weaker oil prices because of its weak balance sheet and negative projected free cash. However, we have increased confidence that its core Permian Basin position (Midland Basin) makes it attractive for consolidation. We assume $2/share credit for M&A potential in our target."

For an analyst ratings summary and ratings history on Parsley Energy click here. For more ratings news on Parsley Energy click here.

Shares of Parsley Energy closed at $14.30 yesterday.

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