KeyBanc maintains Overweight rating on Diversified Energy stock at $18

Investing.com - KeyBanc Capital Markets has reiterated its Overweight rating and $18.00 price target on Diversified Energy Co. (NYSE:DEC) following management meetings with investors. According to InvestingPro data, analysts’ price targets for DEC range from $15 to $26, with the company currently trading near Fair Value levels.

The investment bank noted that Diversified Energy is approaching a "critical corporate catalyst" as the company plans to move its primary stock listing to the United States by December.

KeyBanc highlighted that despite being one of only nine U.S. gas-focused exploration and production companies, Diversified Energy has limited investor awareness, with most meetings being introductory in nature.

The firm believes Diversified Energy has reached a "tipping point of relevance" with several key metrics supporting its position: a market capitalization exceeding $1 billion, production approaching 1.3 billion cubic feet equivalent per day, and upcoming U.S. GAAP financial reporting with the 2025 10-K.

KeyBanc also pointed to Diversified Energy’s partnership with Carlyle as a positive factor supporting the company’s merger and acquisition activities.

In other recent news, Diversified Energy Company announced the pricing of its secondary offering at $13.75 per share. This offering involves 5,713,353 ordinary shares being sold by funds managed by EIG, FS/EIG Advisor, LLC, and FS/KKR Advisor, LLC. The selling stockholders have also provided underwriters a 30-day option to purchase an additional 857,002 shares at the same price. Diversified Energy will not receive proceeds from this transaction as it involves existing shares. Additionally, Mizuho has raised its price target for Diversified Energy to $27.00, up from $23.00, while maintaining an Outperform rating. This adjustment follows the company’s $550 million acquisition of Canvas Energy, which is expected to significantly enhance its Oklahoma asset base. Mizuho projects this acquisition will increase cash flow from operations per share by approximately 11% and free cash flow per share by 24% by 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.