Gabriele Sorbara, an analyst from Siebert Williams Shank & Co, maintained the Buy rating on Diamondback. The associated price target remains the same with $195.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors that highlight Diamondback’s strong financial performance and strategic positioning. The company reported a robust quarter with production and free cash flow exceeding expectations, which was a significant factor in the positive outlook. Additionally, Diamondback has improved its 2025 projections, reflecting efficiency gains, synergies from its merger with Endeavor Energy, and reduced service costs, which have led to a downward revision in capital expenditure guidance.
Furthermore, the anticipated acquisition of Sitio Royalties by its subsidiary, Viper Energy, is expected to enhance oil production estimates, further strengthening Diamondback’s position. The company’s focus on asset sales to reduce debt, with a target of $1.5 billion, also contributes to its financial stability. These elements, combined with a strong free cash flow yield supported by its Midland Basin assets, underpin Sorbara’s confidence in maintaining a Buy rating for Diamondback’s stock.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $175.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FANG in relation to earlier this year.