Diamondback Energy price target lowered to $165 from $170 at BofA

BofA lowered the firm’s price target on Diamondback Energy (FANG) to $165 from $170 and keeps a Buy rating on the shares. No producer has been as transparent with their contingency plans as Diamondback, which initially signaled willingness to downshift activity as far back as last November and on April 16 this was messaged again, “derisking the view that a new plan would be in place in May,” the analyst tells investors. Diamondback announced plans to cut three rigs by mid-year, saving $400M from this year’s capital plan, and updated guidance is now $3.4B-$3.8B from $3.8B-$4.2B prior, with 61 fewer new drills and 49 fewer gross completions, the analyst noted.