Bernstein SocGen Group Starts Diamondback Energy (FANG) at Outperform

Bernstein SocGen Group analyst Bob Brackett initiates coverage on Diamondback Energy (NASDAQ: FANG) with a Outperform rating and a price target of $243.00.

The analyst comments "We recommend FANG. We reach our target price of $243/sh (8% ahead of consensus) by applying a 6.5x EV multiple to 2025E adj. EBITDA of $12.1B and incorporating $2.0B of dividends to reflect total shareholder return. Our bottoms-up NAV model places the value of combined FANG+EER Midland position at north of $65B. Scale deserves a premium in Midland (operational, drilling, completions efficiencies, and modest scarcity/takeout premium), so we apply a 6.5x multiple (in line with our previous favorite sandboxes)."

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 $189.19 yesterday.

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