Wall Street ratings for Pioneer Natural Resources
Currently, ~81% of Wall Street analysts rate Pioneer Natural Resources (PXD) as a “buy” and ~14% of analysts rate it as a “hold.” Around 5% rate the stock as a “sell.” The median price target from these recommendations is $158.61, which is ~4% higher than its April 19, 2016, closing price of $152.17.
Based on the median price targets of analyst recommendations, upstream companies Diamondback Energy (FANG), Occidental Petroleum (OXY), and Energen Corporation (EGN) have potential upsides of ~4%, ~2%, and ~1%, respectively, from their April 19, 2016, closing prices.
The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.
PXD’s individual recommendations
As shown in the above table, the most recent “hold” recommendation comes from Société Générale, which was issued on April 15, 2016. Société Générale assigned the target price of $150 to Pioneer Natural Resources—about 2% lower than the April 19, 2016, closing price of $152.17. It expects the company to reach its target price within the 12 months from the date of recommendation.
Tudor Pickering & Company assigned Pioneer Natural Resources the highest target price of $211, which is ~39% higher than the April 19 closing price of $152.17. Tudor Pickering & Company issued its PXD recommendation in the second week of February 2016. It did not mention any target date for the target price.
Wunderlich Securities assigned Pioneer Natural Resources (PXD) the lowest target price of $127, which is ~17% lower than the April 19 closing price of $152.17. Wunderlich Securities issued its PXD recommendation last week and expects it to reach the target price within 12 months from the recommendation date.
As noted by Wall Street analysts, some of the positives for Pioneer Natural Resources’ stock are strong growth from the Spraberry and Wolfcamp Shales, excellent derivative coverage, and a strong balance sheet.