Truist keeps $68 target on Viper Energy stock amid drop

On Wednesday, Truist Securities maintained a positive outlook on Viper Energy (NASDAQ:VNOM), reaffirming a Buy rating and a $68.00 price target. The firm’s analysts observed that Viper Energy shares have experienced a roughly 15% decline over the past 60 days, underperforming compared to the S&P 500’s approximate 6% drop during the same period. The analysts attribute this decline to a mix of broader market trends and specific challenges faced by the company.

According to Truist Securities, the recent underperformance of Viper Energy’s stock, when compared to other mineral companies, oil prices, and various exploration and production (E&P) firms, is not justified. The analysts highlighted Viper Energy’s robust inventory, which they believe positions the company for higher than average production and free cash flow (FCF) growth. The firm’s projection for Viper Energy includes a nearly 60% annual increase in production by 2025.

The analysts underscored the significant potential gains from Viper Energy’s recent acquisition of Endeavor Energy Resources’ assets. They also noted that the company’s organic activity remains strong, further contributing to its growth prospects. Despite the recent downturn in Viper Energy’s share price, Truist Securities’ reiterated price target reflects confidence in the company’s growth trajectory and financial performance going forward. The company currently offers an attractive dividend yield of 5.75% and trades at a P/E ratio of 11.38. For deeper insights into Viper Energy’s valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, visit InvestingPro.

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, which was well above the forecasted $0.45. Additionally, Viper Energy’s revenue reached $224.87 million, exceeding the anticipated $219.36 million. The company also announced a guidance for the first quarter of 2025, with an expected daily oil production of 30,000 to 31,000 barrels. Viper Energy recently completed the Quinn Ranch acquisition and has a pending drop-down transaction with Diamondback (NASDAQ:FANG), further expanding its operations. In light of these developments, JPMorgan raised its price target for Viper Energy to $56 while maintaining an Overweight rating. The analysts revised their cash flow per share estimates for 2025 and 2026, reflecting confidence in the company’s financial outlook. These recent developments highlight Viper Energy’s strategic growth and strong financial performance.

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