Citi analyst Paul Diamond CFA maintained a Buy rating on Viper Energy (VNOM – Research Report) on May 3 and set a price target of $45.00.
Paul Diamond CFA has given his Buy rating due to a combination of factors surrounding Viper Energy’s current operational and financial performance. The company’s adjusted EBITDA for the first quarter of 2024 was higher than expected, showing strong production levels that managed to exceed both consensus and Citi’s own estimates. This is indicative of a robust operational framework that seems to be balancing production efficiency with the prevailing pricing volatility in the market. Furthermore, Diamond appreciates the company’s forward-looking perspective, as it demonstrates a stable activity forecast on their acreage, supported by a pipeline of wells that are either in process or planned, which contributes to a reassuring medium-term outlook.
Diamond’s confidence in maintaining a Buy rating is further bolstered by the company’s low-risk business profile and the clear visibility into their near-term operational plans. Viper Energy’s strategic approach to mergers and acquisitions is also seen as prudent, suggesting that they are well-equipped to navigate the current market landscape. With the production estimates for the upcoming quarters looking promising, and the financial projections placing adjusted EBITDA figures above consensus expectations, Diamond sees a compelling case for investment. The target price of $45 per share reflects these positive assessments, along with an anticipated share price return of 19.6%, underlining the potential for significant investor gains.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is neutral on the stock.
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Viper Energy (VNOM) Company Description:
Viper Energy Partners LP engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.
