, an analyst from William Blair, has initiated a new Buy rating on Viper Energy (VNOM).
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William Blair has given his Buy rating due to a combination of factors that highlight Viper Energy’s strong market position and potential for substantial returns. Viper Energy stands out as the largest public minerals company, with a significant inventory of royalty acres managed by top-tier exploration and production firms, primarily Diamondback Energy. This strategic positioning allows Viper to achieve impressive per-share growth and maintain robust margins, which in turn supports a high rate of shareholder returns.
Furthermore, Viper Energy is expected to continue delivering industry-leading growth, driven by organic expansion, strategic acquisitions, and share repurchases. The company benefits from minimal exposure to capital and inflationary pressures, thanks to its association with stable operators like Diamondback. Upcoming catalysts, such as potential acquisitions and noncore sales, could further enhance Viper’s value. Additionally, Viper’s shares are trading at an attractive free cash flow yield, and given its leadership in net acres and operational quality, the company is positioned for a premium valuation compared to its peers.
In another report released on August 23, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $44.00 price target.