BMO Capital analyst Phillip Jungwirth upgrades $Diamondback Energy (FANG.US)$ to a buy rating, and adjusts the target price from $175 to $215.
According to TipRanks data, the analyst has a success rate of 41.3% and a total average return of 2.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Diamondback Energy (FANG.US)$'s main analysts recently are as follows:
In a potentially challenging near-term oil macro environment, with the anticipated return of OPEC+ barrels, Diamondback Energy is positioned to outperform relatively due to its advantageous cost structure in the Midland Basin, which allows for dividend coverage below $45 per barrel.
The analyst suggests that Diamondback Energy possesses one of the most promising sequences of positive developments anticipated in the subsequent quarters, particularly as the company concludes the full integration of Endeavor. It is anticipated that the company will announce a 2025 plan that is projected to be substantially more capital-efficient than initially anticipated. The recent decline in share value is partly attributed to a liquidity event by Endeavor sellers, which is viewed as an appealing entry point for investors.
Following the completion of a significant acquisition, Diamondback Energy, alongside another major industry player, has become a preeminent force in the Midland Basin. This positions Diamondback as a 'long-term winner' with significant core inventory depth and top-tier capital efficiency. Despite a re-rating, the company's shares are still considered to be reasonably valued when assessed on free cash flow yield, especially in light of the company's elevated conversion rate.
Note:
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