Raymond James lowers Viper Energy stock price target to $57 from $60

Published 29/07/2025, 14:14
Raymond James lowers Viper Energy stock price target to $57 from $60

Investing.com - Raymond (NSE:RYMD) James lowered its price target on Viper Energy (NASDAQ:VNOM) to $57.00 from $60.00 while maintaining an Outperform rating ahead of the company’s second-quarter earnings report. The $11 billion market cap company currently trades at a P/E ratio of 9.92 and offers a dividend yield of 6.48%.

The firm expects Viper Energy to report second-quarter oil production of 42.5 Mbo/d, which aligns with consensus estimates and falls near the high end of the company’s guidance range of 40-43 Mbo/d. Cash distribution for the quarter is anticipated to be $0.60 per share, in line with Street expectations. According to InvestingPro, 5 analysts have recently revised their earnings downward for the upcoming period.

Raymond James noted that Viper Energy’s acquisition of Sitio (STR) is expected to close in mid-August, with the firm’s full-year 2025 pro forma oil production estimate reaching approximately 49 Mbo/d compared to the Street’s estimate of 48 Mbo/d.

The price target reduction primarily reflects adjustments related to the timing and impact of the Sitio acquisition, according to Raymond James. The firm models approximately $10 million in share repurchases during the quarter, with $9 million previously announced through May 2.

Viper Energy is scheduled to report its second-quarter results on August 4 after market close.

In other recent news, Viper Energy has been actively expanding its portfolio with significant acquisitions. The company recently filed financial statements with the U.S. Securities and Exchange Commission regarding its proposed merger with Sitio Royalties, an all-equity transaction that aims to enhance its assets. This follows Viper Energy’s earlier acquisition of mineral and royalty interests from Endeavor Energy Resources. Analysts from Mizuho (NYSE:MFG) have increased the stock price target to $55, citing the strategic acquisition of Sitio Royalties, which enhances Viper Energy’s position in the energy sector. Evercore ISI also raised its price target to $51, highlighting the $4.1 billion acquisition’s potential to increase production per share by 10% and reduce the dividend breakeven. Texas Capital Securities maintained a Buy rating with a $49 price target, emphasizing the transaction’s valuation and expected synergies of over $50 million. These developments suggest that Viper Energy is solidifying its status as a leading mineral consolidator in the Permian Basin.

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