Parsley Energy (PE) Update - October 9

[dan_s]

In the last 3 months, 8 ranked analysts set 12-month price targets for PE. The average price target among the analysts is $42.13.

The most recent report sent to Reuters is from Peter Kissel at Scotiabank. Peter rates PE a BUY with a price target of $43.00.

I have updated my forecast/valuation model, but there is no change in my valuation of $42.00 because I am still assuming $65/bbl WTI in all of my 2019 forecasts. If WTI does move into Phase 5 and Parsley puts out 2019 production guidance that matches what I am using in my forecast, there is SIGNIFICANT upside in this one. PE is an "Aggressive Growth" company with a lot of running room in the Tier One areas of the Permian Basin.