On Tuesday, Mizuho Securities updated its financial outlook for Pioneer Natural Resources (NYSE:PXD), increasing the stock's price target to $290 from $276. The firm has kept a Neutral stance on the shares. In the update, the firm acknowledged Pioneer Natural Resources' expectation to achieve approximately 4% oil growth in 2024 with a capital budget roughly 4% lower than the previous fiscal year.
The analysis pointed to improved capital efficiency as a key driver for the price target adjustment, attributing it to enhanced well performance and the company's strategic emphasis on developing more 15,000-foot lateral wells. Mizuho's stand-alone net asset value (NAV) calculation for Pioneer Natural Resources stands at $282 per share.
The revised price target of $290 also factors in the pending exchange ratio of 2.3234 with Exxon Mobil (NYSE:NYSE:XOM) and Mizuho's updated NAV of $125 per share for Exxon. The two companies are currently awaiting approval from the Federal Trade Commission (FTC) and anticipate the transaction's completion in the second quarter of 2024.
Mizuho's maintained Neutral rating reflects a balanced perspective on the stock, even as the firm recognizes the company's operational advancements and the impending corporate action with Exxon Mobil. Pioneer Natural Resources and Exxon Mobil are working towards finalizing their deal, pending regulatory clearance.
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