UPDATE: Morgan Stanley Sees 34% Upside in Diamondback Energy (FANG) PT to $161

Morgan Stanley analyst Drew Venker raised the price target on Diamondback Energy (NASDAQ: FANG) to $161.00 (from $153.00) on the belief that the company can offer industry leading growth while also returning cash to shareholders.

The analyst stated "Capital discipline and return of cash is en vogue, but growth remains the primary driver of valuation for shale focused E&Ps and many struggle to deliver both. FANG, however, has the high quality assets and management to deliver both peer-leading growth and strong cash returns. We think this is the best option for shareholders vs. solely prioritizing cash returns. Maintaining peer-leading growth while generating large free cash flow should also support multiple expansion. Re-rating in line with peers implies 34% upside while a likely production beat suggests another 8% upside. No change to the Overweight rating".

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