Sitio Royalties initiated with an Overweight at Stephens

Stephens analyst Mike Scialla initiated coverage of Sitio Royalties with an Overweight rating and $32 price target. Mineral and royalty companies are “an advantaged asset class” with no physical operations or capital requirements and the highest margins in the energy sector, says the analyst, who views Sitio as well-positioned to increase its share of this highly fragmented market.