TD Cowen analyst David Deckelbaum has maintained their bullish stance on FANG stock, giving a Buy rating today.
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David Deckelbaum has given his Buy rating due to a combination of factors, primarily centering on Diamondback’s strategic acquisition of Double Eagle IV’s Midland Basin assets. This acquisition significantly expands Diamondback’s core inventory, adding 39 MBOED and over 400 new drilling locations, which are expected to enhance the company’s free cash flow per share by 2% in 2025 and 5% in 2026.
Furthermore, the deal includes a substantial cash component, making it accretive, and is valued attractively at 5.2 times the 2025 EBITDA, which is slightly below the current valuation of Diamondback. The acquisition not only enhances the company’s asset base with largely undeveloped acreage but also provides competitive well performance and extended lateral potential, thereby positioning Diamondback to optimize capital allocation and increase its production efficiency.
In another report released today, Scotiabank also maintained a Buy rating on the stock with a $215.00 price target.