Viper Energy resumed with an Outperform at Evercore ISI

Evercore ISI analyst Stephen Richardson resumed coverage of Viper Energy (VNOM) with an Outperform rating and $49 price target After anticipating the value uplift for the better part of the past 12 months, the focus at Viper now likely shifts to the organic side and how well the business performs as activity in the Permian retrenches with commodity price, the analyst tells investors in a research note. Improvements in credit quality should also continue to aid the cost of capital with some tangible benefits at next issuance assuming a more flexible covenant stack, the firm adds.