The Austin, TX-based oil and natural gas company is focused on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin.
The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary areas: the Midland Basin, the Central Basin Platform and the Delaware Basin.
"The defensive quality of the stock forms the basis of our Outperform rating and we believe is supported by the relatively low economic limit of the rock targeted in the Midland Basin," the firm said in an analyst note.
Additionally, the company has hedges in place covering almost all of modeled oil production in 2016, BMO Capital noted.
Shares of Parsley Energy closed higher by 0.78% to $19.26 on Friday.
Separately, TheStreet Ratings Team has a "sell" rating with a score of D on the stock.
This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered by the team.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income and decline in the stock price during the past year.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PE