Wells Fargo Starts Diamondback Energy (FANG) at Outperform; a Permian pure play

November 6, 2012 7:14 AM EST
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Price: $78.24 -0.55%

Rating Summary:
    41 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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Wells Fargo initiates coverage on Diamondback Energy (NASDAQ: FANG) with a Outperform rating and $26-$30 valuation range.

The firm comments, "Diamondback is a Permian pure play, with its core asset comprised of 52,000 net acres across six counties in the core of the basin. We believe the company brings an impressive growth profile, driven by low-risk Wolfberry drilling along with upside potential in the Wolfcamp, and potentially other formations, as horizontal drilling takes hold in the basin. Shares currently trade at an attractive valuation and as such, we believe Diamondback represents an attractive way f0r investors to gain exposure to a basin that keeps reinventing itself. We have initiated coverage of Diamondback Energy with an Outperform rating on shares."

EPS estimates for 2012 and 2013 are $1.17 and $1.83.

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 $17.00 yesterday.

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