Benchmark continued to carry a Buy rating on Permian Resources Corp (NYSE: PR) while assigning a price target of $14.00, a level that sits under the stock's prevailing market price of $15.59. The brokerage also flagged that its target is conservative relative to the highest analyst projection of $21.00, according to InvestingPro data.
The research note emphasized an expectation for a robust operational quarter and projected free cash flow exceeding $200 million, even as Benchmark trimmed its fourth-quarter EBITDA forecast. The firm framed this outlook against Permian Resources' recent cash generation, noting the company produced $706.5 million in levered free cash flow over the trailing twelve months.
Benchmark reduced its Q4 EBITDA estimate to $877 million from $959 million. The downgrade was driven principally by month-to-month commodity price adjustments, with Benchmark pointing to particular weakness in natural gas pricing at the Waha hub as a contributing factor to the revision.
Despite the downward adjustment to EBITDA, Benchmark observed that Permian Resources' cost base likely continued to fall during the fourth quarter, a dynamic the analyst said supports a positive operational view for the period.
Company profile and market metrics
Permian Resources is an independent oil and natural gas developer concentrated in the Permian Basin. InvestingPro data cited a market capitalization of $12.86 billion and a price-to-earnings ratio of 14.25, with the platform indicating the stock may be undervalued on its Fair Value assessment. A Pro Research Report with extended commentary and additional ProTips is available to subscribers.
Recent quarterly results and analyst activity
In its most recent reported quarter, Permian Resources posted third-quarter 2025 earnings that beat analysts' expectations, reporting earnings per share of $0.37 versus the forecasted $0.31. Revenue for the quarter matched projections at $1.32 billion.
Other broker actions have varied. BMO Capital reiterated an Outperform rating and nudged its fourth-quarter EPS estimate to $0.30 from $0.29. By contrast, BofA Securities downgraded the stock from Buy to Neutral, citing valuation concerns and lowering its price target to $16.00 from $17.00. That downgrade followed the company’s strong oil production performance and the completion of the APA bolt-on acquisition.
Corporate restructuring and shareholder alignment
Permian Resources recently completed a corporate reorganization that permits management and long-term holders to exchange Class C shares for Class A shares. The company has said the move is intended to better align management ownership with public shareholders and to simplify the company’s capital structure.
Outlook
Benchmark’s stance reflects a balance between operational optimism and commodity price risk. The firm’s expectation of material free cash flow, combined with ongoing cost reductions, supports its Buy rating even as near-term EBITDA was marked down. Other analysts’ actions underscore a mixed view across the broker community, with valuations and recent acquisitions factoring into differing recommendations.