Bank of America Securities analyst Kalei Akamine has reiterated their bullish stance on FANG stock, giving a Buy rating on December 2.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Kalei Akamine has given his Buy rating due to a combination of factors that highlight Diamondback Energy’s strong position in the market. One of the primary reasons is Diamondback’s competitive advantage in terms of oil price required to cover capital and dividends, as well as its debt-adjusted free cash flow yield. Compared to its peers, Diamondback’s metrics are more favorable, with a lower breakeven oil price and a higher yield, which positions it well in a challenging oil price environment.
Additionally, the company’s strategic initiatives in the Midland Basin, particularly in exploring deeper zones, show promise for future productivity. The recent shareholder agreement with the Stephens Family also provides clarity and reduces market concerns about potential large-scale share sell-offs. These factors, combined with Diamondback’s potential for continued outperformance, underpin Akamine’s confidence in maintaining a Buy rating.
In another report released on December 2, Goldman Sachs also maintained a Buy rating on the stock with a $179.00 price target.
Based on the recent corporate insider activity of 51 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.