Clear Street Starts Prairie Operating Co (PROP) at Buy

Clear Street analyst Tim Moore initiates coverage on Prairie Operating Co (NASDAQ: PROP) with a Buy rating and a price target of $16.00.

The analyst comments: "We like how PROP is now positioned to potentially achieve the highest growth oil production growth rate of any U.S. E&P public stock onshore driller over the next two years and attain very favorable low lift and production costs as it reaches scale by solely concentrating in the DJ Basin. PROP has a low-cost operator advantage that should drive lower breakeven oil cost and higher incremental EBITDA margin. We favor the DJ Basin over much of the Permian Basin because of the geological advantages of rock formation requiring less length of drilling needed and the area's potential for PROP to build a large-scale business with a low LOE and lifting cost. We forecast PROP achieves 72% production growth next year and 16% in 2027, excluding future acquisitions. We forecast $308 million adjusted EBITDA this year and $530 million next year, as well as a 71-72% adjusted EBITDA margin, which exceeds the peer group average."

For an analyst ratings summary and ratings history on Prairie Operating Co click here. For more ratings news on Prairie Operating Co click here.

Shares of Prairie Operating Co closed at $4.93 yesterday.

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