Bank of America just raised its EUR/USD forecast
On Wednesday, JPMorgan analyst Arun Jayaram announced a reduction in the price target for Viper Energy (NASDAQ: NASDAQ:VNOM), setting it at $47.00, down from the previous target of $49.00. Despite the decrease, the firm maintains an Overweight rating on the stock. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $145 to $234, suggesting significant upside potential from current levels.
The adjustment follows Viper Energy’s first-quarter results for 2025 and updated company guidance. Jayaram revised the cash flow per share (CFPS) estimates for 2025 and 2026 to $3.46 and $3.85, respectively, a change from the prior estimates of $3.68 and $3.97. The new estimates are based on oil and gas prices projected at $64.02 per barrel and $3.56 per thousand cubic feet (Mcf) for 2025, and $60.02 per barrel and $4.02 per Mcf for 2026. The company currently maintains a robust dividend yield of 4.93% and has consistently paid dividends for eight consecutive years.
Viper Energy, a subsidiary of Diamondback (NASDAQ:FANG) Energy, specializes in mineral interests and benefits from not having to bear capital or operating expenses. The company is known for returning approximately 75% of its distributable cash flow to shareholders through a combination of share buybacks and base/variable dividends. Viper’s heavy leverage to the Permian Basin and its close relationship with Diamondback Energy, which operates a significant portion of Viper’s acreage, provides a level of visibility and reduces uncertainties common in the minerals sector. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.
Jayaram highlighted Viper Energy’s unique position in the market, noting that the combination of EBITDA growth and free cash flow (FCF) yield presents an attractive total return proposition for investors. The reiteration of the Overweight rating reflects JPMorgan’s continued confidence in Viper Energy’s investment potential despite the recent adjustments. Based on InvestingPro’s comprehensive Fair Value analysis, the stock appears undervalued at current levels. Investors can access the full Pro Research Report, which provides detailed analysis of Viper Energy’s valuation, financial health, and growth prospects, along with many more exclusive insights.
In other recent news, Diamondback Energy reported strong financial results for the first quarter of 2025, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $4.83, surpassing the forecasted $3.69, and reported revenue of $4.05 billion, which was higher than the projected $3.63 billion. These results highlight Diamondback’s focus on capital discipline and operational efficiency. Despite the positive earnings report, JPMorgan analyst Arun Jayaram adjusted the price target for Diamondback Energy to $161 from $167, while maintaining an Underweight rating. The revision considers updated EPS and cash flow per share estimates for 2025 and 2026, influenced by projected oil and gas prices. Diamondback Energy plans to allocate a significant portion of its free cash flow to debt reduction and share buybacks. The company also intends to maintain a stable production level of 485,000 barrels per day by the fourth quarter of 2025, with potential increases in 2026 if oil prices rise. Diamondback’s strategic moves include reducing its capital expenditure budget by $400 million and focusing on completion efficiency, reflecting its adaptability to challenging market conditions.
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