Analysts have raised their price target for HighPeak Energy to $12 per share, citing the company’s renewed focus on Permian operations and debt reduction as key drivers of potential upside. This comes despite recent concerns weighing on the stock.

Analyst Commentary

Analysts have provided a detailed perspective regarding the recent outlook for HighPeak Energy, highlighting both encouraging and cautionary factors influencing the company's valuation and prospects.

• Bullish analysts see renewed focus on Permian Basin operations as a positive catalyst for operational performance and potential revenue growth.
• The commitment to debt reduction is viewed as a critical step in enhancing shareholder value and improving the company’s financial flexibility.
• Current valuation is believed to undervalue HighPeak’s assets. There is potential for multiple expansion as execution improves.
• Analysts note that effective management of drilling activities and operational discipline could lead to increased confidence from the investment community.

• Some concerns remain about the company's balance sheet. Over-leverage is seen as a risk to near-term financial stability.
• Questions have been raised regarding the overall quality and depth of HighPeak’s drilling inventory. This could potentially limit future growth opportunities.
• Recent management changes create some uncertainty about the company's strategic direction and execution capabilities.
• Despite efforts to pay down debt, further progress will be critical to allay investor concerns and support sustained valuation improvement.

What's in the News

• HighPeak Energy announced the retirement of CEO and Chairman Jack Hightower. Michael L. Hollis, current President and Board member, was appointed as Interim CEO effective immediately. The Board is working to identify a permanent Chief Executive Officer. (Key Developments)
• Concurrent with Mr. Hightower’s departure, management of the HighPeak Funds, which collectively hold 64.4% of company shares, will be transferred to a committee composed of Michael Hollis, Daniel Silver, and Ryan Hightower. (Key Developments)
• HighPeak Energy completed the repurchase of 2,407,421 shares, representing 1.89% of shares outstanding, for $35.17 million as of June 30, 2025, under the buyback program announced earlier in the year. (Key Developments)

Valuation Changes

• The discount rate has risen slightly, moving from 8.53% to 8.60%.
• The revenue growth estimate has fallen significantly and is now at -10.49%, compared to the previous estimate of -8.12%.
• The net profit margin is now 0.57%, which is a marked decrease from the previous level of 2.64%.
• The future price-to-earnings (P/E) ratio has increased substantially, rising from 76.36 times to 381.89 times.
• The consensus analyst fair value remains unchanged at $9.50 per share.