Morgan Stanley analyst Devin McDermott downgraded Diamondback Energy (NASDAQ: FANG) from Overweight to Equalweight with a price target of $216.00.

The analyst comments "Downgrading FANG from Overweight to Equal-weight. FANG trades at an in-line valuation with key peers despite offering less FCF growth. Spending is likely step higher in 2027 as activity shifts more toward the emerging Barnett play and DUC-related efficiencies roll off. Conversely, several largecap peers offer strong FCF growth (ex commodity price changes) from longer-cycle project startups (COP), deal-driven synergies (DVN), or cost reduction initiatives (OXY). FANG remains a premier US shale operator, but we see a more balanced risk-reward from here."

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Shares of Diamondback Energy closed at $210.02 yesterday.