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Investing.com - Benchmark has reiterated its Buy rating on Diamondback Energy (NASDAQ:FANG) stock with a price target of $195.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $143.45, with 7 analysts recently revising their earnings estimates upward.
The research firm adjusted its third-quarter EBITDA estimate for Diamondback to $2.50 billion from $2.37 billion based on pre-released gas realizations. The current market consensus stands at $2.475 billion. For context, the company’s last twelve months EBITDA stands at $9.7 billion, with an attractive EV/EBITDA ratio of 6.2x.
Benchmark lowered its oil and BOE (barrel of oil equivalent) volume projections closer to the midpoint of guidance. Data from Enverus indicates Diamondback is operating 13 active rigs, which aligns with the company’s second-half guidance.
The firm noted that Diamondback has been more responsive than most competitors to macroeconomic conditions. Benchmark has adjusted its balance sheet projections to account for recent asset sales and share count.
Diamondback’s asset sale targets have been achieved, with share buybacks expected to be prioritized once all transactions close in the first quarter of 2026. The company maintains a healthy dividend yield of 2.82% and trades at a P/E ratio of 10.08, demonstrating its commitment to shareholder returns.
In other recent news, Diamondback Energy is set to report its third-quarter 2025 earnings, with analysts showing strong support for the company’s performance. Mizuho has maintained an Outperform rating, projecting that Diamondback will exceed consensus estimates for EBITDA and free cash flow by approximately 5%. UBS has reiterated its Buy rating, noting significant improvements in operational efficiency and a $500 million reduction in fiscal year 2025 cash capital expenditure while keeping production volumes stable. RBC Capital increased its price target for Diamondback Energy from $160 to $173, maintaining an Outperform rating and citing the company’s strategic response to commodity market uncertainty. Bernstein SocGen Group also reiterated an Outperform rating, highlighting Diamondback as a significant player with a substantial inventory life compared to its competitors. KeyBanc maintained its Overweight rating following Diamondback’s recent asset transactions, which completed its deleveraging program post-acquisitions. These developments underscore the positive sentiment among analysts regarding Diamondback Energy’s strategic and operational initiatives.
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