Nomura Securities Starts Diamondback Energy (FANG) at Buy

Nomura Securities initiates coverage on Diamondback Energy (NASDAQ: FANG) with a Buy rating and a price target of $93.00. The analyst cited strong returns, cash margins, and growth in the heart of the Midland Basin.

Analyst Brian Downey commented, "Diamondback’s ~85,000 acres in the core of the Midland Basin and its accompanying attractive growth, breakevens, cash margins, and returns have made the stock an investor favorite among the Permian E&Ps (see Fig. 5 in our sector overview for a breakdown of consensus ratings). In our view, the company’s solid balance sheet, bolstered by recent equity raises that were also used to add acreage, help to ensure that FANG can both capitalize on the downcycle (if additional deals present themselves) or ramp activity in the event of an increase in commodity prices. "

For more ratings news on Diamondback Energy click here.

Shares of Diamondback Energy closed at $78.20 yesterday.

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