What is Wall Street saying?
Now let’s look at Wall Street recommendations for RSP Permian (RSPP) following its latest quarter earnings release on May 12.
Most rate RSP Permian a “buy”
Approximately 65% of analysts tracking RSP Permian (RSPP) surveyed by Bloomberg rate it a “buy” or some equivalent. Approximately 30% rate the company a “hold” or an equivalent, while 5% of the analysts surveyed rate it a “sell.”
In comparison, approximately 50% of analysts surveyed by Bloomberg that track Cenovus Energy (CVE) rate it a “hold” or some equivalent, while 64% of the analysts rated LINN Energy (LINE) as “hold.” Approximately 50% of the analysts tracking Continental Resources (CLR) rated it as “buy.” Continental Resources constitutes 1.3% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Following RSP Permian’s financial results disclosed on May 12, RBC Capital Markets, a Canadian investment bank that is part of the Royal Bank of Canada, gave RSP Permian (RSPP) a target price of $35. RSPP currently trades near $29, implying a 20.6% return for the next 12 months.
Investment bank Goldman Sachs (GS) has the target price of $33, implying a handsome ~14% return from RSP Permian over the next 12 months.
Tudor, Pickering, Holt and Co. gives RSP Permian an “accumulate” recommendation. Its target price of $36 implies a healthy 24% return over the next 12 months.
Investment bank Raymond James has a $35 target price for RSPP, with an “outperform” recommendation, implying a 20.6% return over the next 12 months.
Scotia Howard Weil, a part of Scotia Capital, gave RSP Permian a “sector perform” recommendation. Its target price of $34 implies a healthy 17% return over the next 12 months.
You can learn more about the oil and gas industry in Market Realist’s Energy and Power page.