UBS Starts Parsley Energy (PE) at Buy

UBS initiated coverage on Parsley Energy (NYSE: PE) with a Buy rating and a price target of $23.00.

Analyst William Janela commented, "As an early-stage growth E&P with >80,000 net surface acres in the core of the Midland Basin, PE is poised to deliver peer-leading oil production growth as it continues its shift to horizontal development, enabling it to outperform peers on debt-adjusted growth metrics over 2015-19E. Relative to peers, PE offers a larger, more visible resource inventory with an unbooked:proved ratio of 9.5x (second highest in our universe), and it should see continued NAV expansion as it further delineates its acreage footprint. We believe PE's superior debt-adjusted growth & above-average unbooked resource inventory have yet to be fully incorporated into valuation, with shares trading about in line with Permian peers on 2016-17E EV/EBITDX under our price deck (but a 2-3x discount at current strip prices) and ~0.71x NAV vs. peers' ~0.82x."

For an analyst ratings summary and ratings history on Parsley Energy click here. For more ratings news on Parsley Energy click here.

Shares of Parsley Energy closed at $18.66 yesterday.

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