Mizuho Securities Reiterates buy on Diamondback Energy (FANG) Following 3Q Preannouncement
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Mizuho Securities reiterated a Buy rating and $105.00 price target on Diamondback Energy (NASDAQ: FANG) following the company's 3Q preannouncement. FANG also released initial 2017 estimates and expects to produce 52-58 mboe/ d from a $500-$650 million program that entails a 5-7 rig program that may drill 90-120 wells, dependent on oil prices.
Analyst Timothy Rezvan commented, "Diamondback's press release this morning included strong 3Q16 data points and initial 2017 guidance that exceeded forecasts. We expect FANG shares to respond favorably to the bullish update on growth. The pre-announcement validates our view that FANG shares still have upside, and rich valuation multiples will compress as earnings estimates increase across the Street. The update on the strength of the business (well costs grinding lower, unit expense guidance intact) and visibility on continued growth in a $45+/b WTI world should help the company if it needs to raise capital for growth-oriented acquisitions."
Shares of Diamondback Energy closed at $94.70 yesterday.
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