Pioneer Natural Resources Downgraded Amid Exxon Mobil Acquisition: Here's Why
Portfolio Pulse from Lekha Gupta
Pioneer Natural Resources Co (PXD) was downgraded by Mizuho Securities analyst Nitin Kumar from Buy to Neutral, maintaining a price target of $301. The downgrade reflects the pending acquisition by Exxon Mobil Corp (XOM). PXD's Q3 FY23 adjusted EPS was $5.83, surpassing consensus, but revenue fell short at $3.46 billion. The company raised its FY23 production guidance. Concerns include potential strategy missteps and underperformance on recoveries per lateral foot on new laterals. Q4 FY23 EBITDAX/CFPS estimates are above consensus. PXD shares dropped by 0.70% to $235.24.
November 15, 2023 | 8:17 pm
News sentiment analysis
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NEGATIVE IMPACT
Pioneer Natural Resources downgraded to Neutral from Buy by Mizuho Securities, despite beating Q3 EPS estimates but missing on revenue. Raised FY23 production guidance but faces strategic concerns.
The downgrade by a prominent analyst due to concerns about the pending acquisition and strategic execution risks could lead to a negative short-term impact on PXD's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Exxon Mobil's pending acquisition of Pioneer Natural Resources is cited as a reason for PXD's downgrade, which may reflect on XOM's strategic moves.
While the news is more directly related to PXD, the mention of Exxon Mobil's pending acquisition could have a neutral short-term impact on XOM as the market absorbs the implications of the acquisition.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50