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Key Wall Street Targets for Major Permian Oil and Gas Stocks

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Jan. 27 2017, Updated 10:36 a.m. ET

Analyst recommendations

In this final part of our series, we’ll look at the Wall Street analysts’ targets for Apache (APA), Concho Resources (CXO), Occidental Petroleum (OXY), and Pioneer Natural Resources (PXD). These stocks have the majority of their operations in the Permian Basin.

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Consensus recommendations

Concho Resources and Pioneer Natural Resources have the most “buy” recommendations as compared to their peers—at 78% and 91%, respectively.

Apache and OXY have the most “hold” recommendations, at 63% and 61.5%, respectively. Apache’s average 12-month target price of $65.69 implies positive returns of 8% over the next 12 months. CXO’s average 12-month target price of $160.74 implies positive returns of 18% over the next 12 months.

Average 12-month target price of $76.91 for OXY implies a return of 13% over the next 12 months. PXD’s 12-month averages target of $219.82 implies a return of 20%—the largest in the group under review in this series.

CXO and PXD are thus expected to deliver the highest returns in the next 12 months.

Recent upgrades

CXO and PXD were recently upgraded by analyst firms. Seaport Global Securities upgraded its ratings for CXO from “accumulate” to “buy” on December 9, 2016. Société Générale upgraded its rating for PXD from “sell” to “hold” on January 1, 2017.

Recent downgrades

Notably, Occidental Petroleum was downgraded by Bank of America Merrill Lynch from “buy” to “neutral” on January 4, 2017.

The above companies make up 8% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

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