In a report released today, Gabriele Sorbara from Siebert Williams Shank & Co maintained a Buy rating on Matador Resources, with a price target of $69.00.
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Gabriele Sorbara has given his Buy rating due to a combination of factors, primarily focusing on Matador Resources’ strong performance and strategic initiatives. The company reported robust second-quarter results that exceeded consensus expectations, although they were mixed relative to Sorbara’s estimates. Despite a slight adjustment in oil production guidance for the full year, Matador Resources maintained its capital expenditure guidance, demonstrating effective management of resources.
Matador Resources’ track record of execution, asset quality, and strong balance sheet with low leverage were pivotal in Sorbara’s decision. The company’s strategic buybacks and acquisitions further enhance its valuation, while midstream optionality adds significant value. Although the third-quarter guidance indicates a temporary dip in production, Sorbara remains confident in the company’s ability to achieve the upper end of its production targets, justifying a premium valuation and supporting the Buy rating.
Sorbara covers the Energy sector, focusing on stocks such as Civitas Resources, Comstock Resources, and EOG Resources. According to TipRanks, Sorbara has an average return of 22.5% and a 54.74% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $62.00 price target.