In a report released today, Gabriel Daoud from TD Cowen maintained a Buy rating on Matador Resources (MTDR – Research Report), with a price target of $62.00.
Gabriel Daoud has given his Buy rating due to a combination of factors that reflect Matador Resources’ strategic decisions and financial outlook. The company has initiated its first-ever stock buyback program, authorized at $400 million, which is a significant move given its historical preference for organic growth and mergers and acquisitions. This buyback is seen as a logical step in the current market environment where the equity trades at a discount to its net asset value.
Furthermore, Matador Resources has addressed concerns regarding its production volume trajectory and buyback pace. The company has demonstrated a commitment to maintaining production levels while also being active in its buyback strategy. The updated financial model indicates an improvement in capital efficiency expectations for 2026, with a forecasted free cash flow yield of approximately 7%. These strategic and financial adjustments contribute to the positive outlook and justify the Buy rating.
In another report released today, Raymond James also reiterated a Buy rating on the stock with a $55.00 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MTDR in relation to earlier this year.