Mizuho Securities Starts Diamondback Energy (FANG) at Buy
- Wall Street flat as Microsoft rallies
- Unusual 11 Mid-Day Movers 10/21: (ALKS) (CXRX) (CERC) Higher; (SGY) (MBRX) (STS) Lower
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
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."
Shares of Diamondback Energy closed at $91.59 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- SunTrust Raises Price Target on E*TRADE Financial (ETFC) to $31 Following Solid 3Q
- RBC Capital Raises Price Target on Danaher (DHR) Following 'Clean' 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!