Mizuho Reiterates Outperform Rating on Diamondback Energy (FANG)

Mizuho analyst Nitin Kumar reiterated an Outperform rating and $240.00 price target on Diamondback Energy (NASDAQ: FANG).

The analyst commented: "We expect in-line FCF / CFPS from FANG, although 'gross' basis EBITDAX of ~$3.4bn seems above consensus which includes some 'net' forecasts. Beyond the quarter, the key focus is on the 2027 capital budget. Management has previously indicated that they view the current macro oil price outlook as a 'green light' for modest growth. This suggests low-single-digit oil growth (inline with street), with current activity levels (19 rigs, 5 crews) maintained. However, a higher mix of Barnett wells (~15%) and cost inflation biases our 2027 capital budget ~5% above current Street consensus. The recent amendment to the Stockholders' Agreement with the Stephens Family that increased the Board seat allocation by one (with ownership between 10-25%), increasing use of chemical surfactants, and thoughts on further industry consolidation are also likely to be in focus at the upcoming earnings call. We maintain Outperform rating and NAV-based price target of $240/Sh."

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 $195.11 yesterday.

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