PEDEVCO (PED) Stock Forecast & Price Target

PEDEVCO Corp's positive outlook is supported by a projected reduction in non-cash depletion expenses, which is expected to enhance prior-period net income and facilitate accurate financial reporting. The company has demonstrated a consistent trend of positive earnings since the appointment of CEO Doug Schick in January 2025, indicating effective leadership and strategic direction. While elevated lease operating expenses have affected operating income, the overall strong revenue growth from increased production and the expansion of well development positions the company favorably for future financial performance.

PEDEVCO's production figures for the recent period fell slightly short of forecasts, reporting 1,707 barrels per day (BPD) compared to an expected 1,716 BPD, which, despite strong pricing of $56.86 per barrel, results in uncertainty about consistent revenue growth. The company's methodology in calculating reserves led to an overstatement of depletion expenses, which inaccurately jeopards its financial statements by understating net income. Furthermore, although the firm maintains a cash balance of $10 million and no current debt, there is an anticipated reliance on drawing down its available revolver to finance its fourth-quarter buildout, highlighting potential liquidity concerns moving forward.