Diamondback Energy price target raised to $173 from $160 at RBC Capital

Investing.com - RBC Capital has raised its price target on Diamondback Energy (NASDAQ:FANG) to $173.00 from $160.00 while maintaining an Outperform rating. According to InvestingPro data, the stock currently trades at $144.21 with a P/E ratio of 10.2, suggesting potential upside from current levels.

The firm cited management’s likely continuation of its "yellow light" scenario, which addresses commodity market uncertainty through a maintenance production profile.

RBC expects Diamondback to direct all variable shareholder returns, estimated at approximately $550 million, toward share buybacks due to persistent weakness in the company’s stock price.

According to RBC Capital, key topics in investor discussions include potential future secondary sales by Endeavor shareholders, efforts to reduce leverage, and the company’s plans for future mergers and acquisitions.

The price target adjustment represents an 8.1% increase from RBC Capital’s previous valuation of Diamondback Energy.

In other recent news, Diamondback Energy has been the focus of multiple analyst reports highlighting its financial and operational performance. Piper Sandler reiterated its Overweight rating with a price target of $222, emphasizing the company’s consistent operational efficiency and steady oil production volumes. Meanwhile, KeyBanc maintained its Overweight rating with a $176 price target, following Diamondback’s recent asset transactions, which marked the completion of its deleveraging program post-acquisitions. Bernstein also reiterated an Outperform rating with a $192 price target, noting Diamondback as a significant player in the shale production sector with a long inventory life.

William Blair initiated coverage on Diamondback Energy with an Outperform rating, citing its cost structure and high free cash flow per barrel as standout features. Additionally, Melius Research started its coverage with a Buy rating and a $213 price target, highlighting the company’s operations in the Permian Basin. These recent developments reflect a strong consensus among analysts about Diamondback Energy’s strategic positioning and operational strengths.

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