Permian Resource Corporation (PR) just upgraded by RBC Capital

RBC Capital, a global investment bank, has just raised the price target for Permian Resource Corporation (NYSE:Pr). Here’s the reason.

Permian Resource Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused on the Permian basin, with assets concentrated at the core of the Delaware basin.

On May 16, RBC Capital adjusted its Permian Resource Corporation outlook (NYSE:PR) to raise its stock price target from $16 to $17, reaffirming its outperform valuation. Analysts highlighted that success in PR depends on increasing operational efficiency and involvement in additional integration. Despite the intense market volatility, oil and gas producers recently announced that they are expanding their footprint in the northern Delaware basin by acquiring $608 million in assets from Apache Parent Apa Corp.

Permian Resource Corporation (NYSE:PR) recently revealed a very strong result for the first quarter of 2025. This is highlighted by strong operational performance and cost reductions. The company has surpassed its earnings, revenue and production expectations, even achieving its highest free cash flow per share in its history of $0.54 per share. Additionally, oil and gas companies can be more opportunistic during recessions where investments can earn the best returns, as about 25% of their 2025 oil production is hedged at a price just above $73 per barrel.

While we acknowledge the growth potential of PR, our belief lies in the belief that some AI stocks hold a greater commitment to deliver higher returns and limited downside risk. If you’re looking for AI stocks that are more promising than PR and have a potential of 100 times upside, check out our report on this Cheapest AI stocks.

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Disclosure: None.