Gabriele Sorbara, an analyst from Siebert Williams Shank & Co, reiterated the Buy rating on Diamondback (FANG – Research Report). The associated price target is $220.00.
Gabriele Sorbara’s rating is based on Diamondback Energy’s (FANG) robust quarterly performance, which outpaced expectations with a substantial free cash flow (FCF) and discretionary cash flow per share (DCFPS), underpinned by notably lower cash taxes than anticipated. Diamondback’s acquisition of Endeavor Energy Resources, L.P further consolidates this view, as it positions the company with a strong and sustainable FCF yield, a key metric for financial health in the energy sector.
Moreover, FANG’s guidance for the first quarter of 2024 indicates a continued commitment to efficient capital expenditure, with production estimates slightly below earlier projections yet still within a range that demonstrates the company’s operational effectiveness. The combination of lower-than-expected capital expenses, a strong production outlook, and the strategic acquisition of Endeavor suggests a promising future for Diamondback, warranting a Buy rating from Sorbara.
Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, Callon, and Devon Energy. According to TipRanks, Sorbara has an average return of 9.7% and a 45.28% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $185.00 price target.
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Diamondback (FANG) Company Description:
Diamondback Energy, Inc. is an independent oil and natural gas company, which engages in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves. It operates through the Upstream and Midstream Services segments. The Upstream segment focuses on the Permian Basin operations in West Texas. The Midstream Services segment involves in the Midland and Delaware Basins. The company was founded in December 2007 and is headquartered in Midland, TX.
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