Parsley Energy (PE) Stock Price Target Raised at Keybanc
NEW YORK (TheStreet) -- Parsley Energy's (PE) - Get Report price target was increased to $29 from $28 at Keybanc on Tuesday morning.
The firm has an "overweight" rating on the Austin, TX-based oil and natural gas company.
"PE is enhancing its Delaware Basin asset by purchasing a 17.5% royalty interest under a significant portion of its acreage, which boosts the Delaware IRRs above that of its core Midland properties, no longer leaving investors to question if the asset can compete for capital with the Midland Basin," the firm wrote in a note.
Following the acquisition, Keybanc anticipates that the Delaware Basin will be a focal point for the company.
Additionally, the royalty ownership should enhance capital efficiency and the overall returns profile of the company going forward, the firm noted.
Shares of Parsley Energy are advancing by 1.48% to $25.43 in pre-market trading on Tuesday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by several weaknesses that TheStreet believes should have a greater impact than any strengths. These weaknesses could make it more difficult for investors to achieve positive results compared to most of the stocks covered by the team.
Among the areas the team feels are negative, one of the most important has been an overall disappointing return on equity.
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
