UPDATE: Credit Suisse Initiates Coverage On Parsley Energy On Good Market Position

In a report published Tuesday, Credit Suisse analyst Arun Jayaram initiated coverage on Parsley Energy (NYSE: PE) with an Outperform rating and $31.00 price target.

In the report, Credit Suisse noted, “We initiate coverage of Parsley Energy (PE) with an Outperform rating and a target price of $31, which assumes that the shares trade at parity with our net asset value (NAV) estimate.

"Parsley is a Permian Basin pure play, with a concentrated position in the Northern Midland Basin and an enterprise value of $3.0 billion. PE owns 89K net acres in the Midland Basin, but the bulk of its acreage is in the ‘core of the core', which provides some of the highest rate of return oil projects in U.S. E&P. In addition, PE has a free call option on the Delaware Basin, with a contiguous 23K net acre position primarily in Pecos and Reeves counties, where industry activity has been rising.”

Parsley Energy closed on Monday at $23.62.