Permian Resources is primed for strong gains ahead, according to Goldman Sachs.
Analyst Neil Mehta initiated coverage on the energy company with a buy rating and 12-month price target of $19, which suggests about 40.6% upside.
This year, the stock has lost roughly 1% this year and about 16.7% this quarter amid a rough quarter for the broader energy sector.
Permian Resources produces oil and natural gas primarily from the Permian Basin, which is the highest-producing oilfield in the U.S. located in West Texas and southern New Mexico.
"We are recommending PR as the stock carries several fundamental elements that position it to outperform peers," Mehta said in a Sunday note to clients.
Persons:
Goldman Sachs, Neil Mehta, Mehta
Organizations:
Resources, Diamondback Energy
Locations:
U.S, West Texas, New Mexico, Delaware