Wells Fargo analyst Hanwen Chang maintained a Buy rating on Matador Resources yesterday and set a price target of $77.00.
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Hanwen Chang has given his Buy rating due to a combination of factors including Matador Resources’ expected strong performance in Q2’25, characterized by record production and robust free cash flow. The company is anticipated to maintain its growth trajectory while managing to keep best-in-class free cash flow margins, which positions it well for the future. Despite a slight reduction in production in the latter half of 2025 due to planned operational adjustments, the company is expected to continue its disciplined approach to capital spending, focusing on efficiency and inventory management.
Additionally, Matador Resources is exploring strategic options for its San Mateo midstream business, which is not fully reflected in the current share price. The company sees potential to unlock significant value through strategic alternatives, such as raising additional debt or pursuing equity transactions. Management’s patient and disciplined approach to these opportunities, combined with the evolving midstream M&A landscape, could further enhance the company’s value over time.
In another report released on July 11, Mizuho Securities also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 89 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.