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On Wednesday, JPMorgan analysts adjusted their outlook on Viper Energy (NASDAQ: NASDAQ:VNOM), raising the price target to $56.00 from the previous $55.00 while maintaining an Overweight rating on the stock. Currently trading at $45.04, the stock has experienced a notable 10.76% decline over the past week. The revision follows a thorough analysis of Viper Energy’s fourth-quarter results and the company’s updated guidance. According to InvestingPro data, the company maintains impressive gross profit margins of 92.92%.
The analysts at JPMorgan have updated their cash flow per share (CFPS) estimates for the years 2025 and 2026 to $3.89 and $4.28, respectively, up from the earlier projections of $3.70 and $4.09. These new estimates are based on oil and gas price assumptions of $69.86 per barrel and $66.69 per barrel for 2025 and 2026, along with $3.53 per Mcf and $3.90 per Mcf for the corresponding years. InvestingPro analysis reveals that while the company operates with moderate debt levels, its liquid assets comfortably exceed short-term obligations with a current ratio of 4.89.
The revised model and estimates led JPMorgan to reiterate its Overweight rating on Viper Energy shares. The analysts’ confidence in the stock is reflected in the slight increase in the price target set for December 2025, which now stands at $56, a dollar increase from the previous target.
Viper Energy’s financial performance and the updated guidance have been significant factors in JPMorgan’s reassessment. The firm’s analysts have taken into account the latest quarterly results, which have played a crucial role in shaping the updated CFPS estimates and the consequent price target adjustment.
Investors and market watchers will be keeping a close eye on Viper Energy’s stock performance, as the updated estimates and price target may influence market sentiment. The JPMorgan rating and price target are indicators of the firm’s expectations for Viper Energy’s future financial health and stock performance.
In other recent news, Viper Energy reported its fourth-quarter 2024 earnings, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of $2.04, well above the anticipated $0.45. Revenue also exceeded forecasts, reaching $224.87 million compared to the projected $219.36 million. Viper Energy announced the completion of the Quinn Ranch acquisition and a pending drop-down transaction with Diamondback (NASDAQ:FANG). Analysts have noted the company’s strategic acquisitions and its continued focus on expanding its footprint in the oil and gas sector. The company has set a Q1 2025 guidance for daily oil production between 30,000 and 31,000 barrels. Analysts from firms such as Truett Securities and Goldman Sachs have expressed interest in the company’s future growth and strategic initiatives. Despite the positive earnings report, Viper Energy’s stock experienced a decline in after-hours trading.
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