On Thursday, Truist Securities revised its stance on HighPeak Energy (NASDAQ:HPK) stock, shifting the rating from a Sell to a Hold. Accompanying this upgrade, the firm also increased the price target for the energy company's shares to $13.00, up from the previous target of $10.00.
The adjustment in rating comes after HighPeak Energy displayed signs of overcoming previous operational and financial challenges. Improved operations have led to reduced expenditures and lower costs for the company.
Truist Securities anticipates that HighPeak's production will remain fairly stable throughout the current year and then begin to decline moderately the following year.
According to Truist Securities, if HighPeak Energy can maintain firm prices and keep costs and spending under control, the company should be able to sustain a free cash flow that could yield a high single-digit return. This outlook has contributed to the decision to upgrade the stock to a Hold position.
The new price target of $13.00 represents a 30% increase from the former target, reflecting a more optimistic view of HighPeak Energy's financial prospects.
Truist Securities' revised target suggests that the firm believes HighPeak has the potential to maintain its current trajectory of financial performance.
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