Matador Resources stock price target lowered to $52 at KeyBanc

Investing.com - KeyBanc lowered its price target on Matador Resources Company (NYSE:MTDR) to $52.00 from $61.00 on Friday, while maintaining an Overweight rating on the oil and gas producer’s stock. Currently trading at $40.49, InvestingPro analysis indicates the stock is undervalued, with attractive metrics including a P/E ratio of 7.03 and an EV/EBITDA of 3.45.

The price target reduction follows Matador’s recent earnings report, which prompted KeyBanc to trim its EBITDA estimates for the company. Despite the lower target, the firm reiterated its positive outlook on the stock. InvestingPro data shows the company maintains a GREAT financial health score, with particularly strong profitability metrics and a robust dividend yield of 3.49%.

Matador shares fell 9.6% on Wednesday, underperforming the S&P Oil & Gas Exploration & Production ETF, which gained 0.5%. The decline came after the company announced plans to increase drilling activity in the current $60 per barrel WTI oil price environment, citing lower oilfield services costs.

KeyBanc noted that while investors reacted negatively to Matador’s decision to accelerate activity, the firm shares management’s view on oil prices and supports being opportunistic amid low oilfield services costs. The company currently operates 10 rigs according to Enverus data, with staggered contracts providing operational flexibility.

The research firm also highlighted potential value from Matador’s San Mateo midstream business, expecting news on "value illumination" for this segment in 2026. KeyBanc values the San Mateo unit at $9-$12.50 per share.

In other recent news, Matador Resources Company announced its third-quarter 2025 earnings, revealing a mixed financial performance. The company reported an earnings per share (EPS) of $1.36, which exceeded analyst expectations of $1.27, resulting in a positive surprise of 7.09%. Despite the EPS beat, Matador Resources fell short on revenue, reporting $810.24 million against the anticipated $888.97 million, marking an 8.86% miss. This revenue shortfall has raised concerns among investors. While there was no mention of mergers, analyst actions, or other company news, the earnings results have been a significant focus. The financial figures highlight the company’s ability to exceed profit expectations while facing challenges in meeting revenue forecasts. These developments come as part of the company’s ongoing financial reporting. Investors are likely to keep a close watch on how Matador Resources addresses the revenue gap in future quarters.

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