Mizuho Securities Starts Diamondback Energy (FANG) at Buy

October 5, 2016 4:21 PM EDT
Get Alerts FANG Hot Sheet
Price: $106.93 -1.12%

Rating Summary:
    32 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
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Mizuho Securities initiates coverage on Diamondback Energy (NASDAQ: FANG) with a Buy rating and a price target of $105.00.

Analyst Timothy Rezvan commented, "With an inimitable cost advantage due to mineral rights ownership, we think Diamondback warrants its lofty multiple (14x 2017E EV/EBITDA), and see upside to the current share price. A low cost structure, based on its lean corporate profile and its minerals ownership across some core properties, drives best-in-breed drilling economics and, in turn, a steep valuation multiple and rich equity currency that funds successful bolt-on acquisitions. With the potential to organically increase inventory through downspacing, and visibility on a ~20% production growth CAGR through 2020, we believe FANG shares have room to run."

For an analyst ratings summary and ratings history on Diamondback Energy click here. For more ratings news on Diamondback Energy click here.

Shares of Diamondback Energy closed at $91.59 yesterday.



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