NEW YORK (TheStreet) -- Pioneer Natural Resources (PXD) twelve month price target was raised to $246 from $225 by analysts at UBS AG (UBS) while maintaining its "buy" rating.
The firm raised its outlook due to a higher long-term rig count at the company's Midland Wolfcount development.
"Assuming 75% of the Midland Wolfcamp's production stream is crude oil, PXD's base case scenario implies basin-wide oil volumes will increase by ~1.65 MMBbld over the next 10 years; for perspective, total US oil production is currently ~8 MMBbld. This massive production growth will largely rely on the industry's ability to effectively develop infrastructure in the play (gathering/processing capacity, transportation infrastructure, power, water access, etc.)," said analysts.
TheStreet Ratings team rates PIONEER NATURAL RESOURCES CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PIONEER NATURAL RESOURCES CO (PXD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."