Friday, FBR Capital Markets initiated coverage of Plains Exploration & Production Co. (PXP) stock with an Outperform rating and a price target of $40.
Analyst Rehan Rashid initiated the stock at Outperform with a 12-month price target of $40.00 per share, based on the stock trading at 70% of his before-tax risked 3P net asset value, or NAV, of $56.00 per share and 8.5x 2010 EV/DACF. The analyst's NAV assumes $4.50/Mcf long term and a 15% discount rate.
The analyst's Outperform rating reflects his belief that management has positioned the company to harvest stable cash flows from oil-based production (60% by volume) and shale gas from the Haynesville shale with Chesapeake Energy Corp. (CHK) as a joint venture operator.
The analyst said that an added upside is the risked exploratory option of $6.00 per share in the deepwater Gulf of Mexico, or GOM, from three near-term drilling prospects, two of which are in the Lower Tertiary.
Currently, PXP is down $0.22 or 0.74% and trading at $29.61.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.