Benchmark Co. analyst Subash Chandra maintains $Diamondback Energy (FANG.US)$ with a buy rating, and adjusts the target price from $154 to $195.
According to TipRanks data, the analyst has a success rate of 46.7% and a total average return of 10.9% 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 an environment where the oil market may face near-term challenges, including the anticipated return of OPEC+ production, Diamondback Energy is positioned to outperform relative to its peers. This is attributed to its advantageous placement at the lower end of the cost spectrum in the Midland Basin, coupled with a dividend coverage that remains robust below $45 per barrel.
Diamondback Energy is perceived to have one of the most straightforward positive event paths in the upcoming quarters, especially with the complete integration of Endeavor. It is anticipated that the company will announce a 2025 program that is significantly more capital efficient than previously estimated. The recent decline in share value, partly due to a liquidity event by Endeavor sellers, is seen as an appealing entry point for investors.
Following the completion of a significant acquisition, Diamondback Energy has emerged as a dominant force in the Midland Basin alongside a major industry player. The company's positioning is seen as advantageous for long-term success, supported by a substantial core inventory and top-tier capital efficiency. Despite a re-rating of the shares, they are perceived to offer reasonable value when assessed on free cash flow yield, reflecting the company's superior conversion rate.
Note:
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