Matador Resources price target raised to $48 by UBS on San Mateo potential

Investing.com - UBS raised its price target on Matador Resources Company (NYSE:MTDR) to $48.00 from $46.00 on Thursday, while maintaining a Neutral rating on the stock. According to InvestingPro data, Matador maintains a "GREAT" financial health score and trades at an attractive P/E ratio of 6.86, with the company’s next earnings report due in 5 days.

The price target adjustment comes as UBS anticipates Matador’s upcoming second-quarter update could contain significant developments, particularly regarding the future of the company’s San Mateo operations.

UBS highlighted that a potential large-scale monetization of San Mateo assets could accelerate Matador’s debt reduction efforts or enhance its share buyback program.

The firm noted that Matador made headlines in its first-quarter 2025 update by being among the first exploration and production companies to respond to low oil prices by reducing drilling activity and introducing a new buyback plan.

Despite the price target increase, UBS maintained its Neutral stance on Matador stock, citing a preference for gas-focused exploration and production companies over oil-focused ones in the current oil price environment.

In other recent news, Matador Resources Company has been the subject of various analyst ratings and strategic developments. Benchmark reiterated its Buy rating on Matador Resources, maintaining a price target of $62, while adjusting its second-quarter EBITDA estimate to $572 million due to changes in the company’s oil production mix. Mizuho (NYSE:MFG) also maintained an Outperform rating with a $73 price target, noting that Matador’s management is expected to provide insights into its oil price evaluation and activity levels for 2026. This quarter marks Matador’s first share buybacks following a $400 million authorization announced in April.

RBC Capital reaffirmed its Outperform rating on Matador Resources, with a focus on the potential monetization of its midstream assets, possibly through an IPO. The company has recently announced several leadership promotions, with Bryan A. Erman elevated to Co-President, Chief Legal Officer, and Head of M&A, and William D. Lambert promoted to Executive Vice President, Chief Financial Officer, and Head of Strategy. Additionally, RBC Capital analysts highlighted Matador’s strategic positioning and growth potential, despite fluctuations in oil prices.

KeyBanc Capital Markets identified Matador Resources as one of the interesting liquid producers, alongside other companies like EOG Resources (NYSE:EOG) and EXCO Resources. Investors are paying close attention to Matador’s strategic decisions, including its recent combination of Pronto and San Mateo operations, which may impact its midstream business. These developments reflect Matador Resources’ ongoing efforts to optimize its operations and enhance shareholder value.

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