Bernstein Reiterates Outperform on Diamondback Energy (FANG) Amid Oil Supply Concerns
Quick Take
Bernstein maintains an 'Outperform' rating on Diamondback Energy amid rising oil supply concerns.
Key Points
- Oil supply concerns are impacting market dynamics.
- Diamondback Energy shows strong performance potential.
- Analysts favor FANG for its growth prospects.
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~2 min readVardah Gill
2 min read
With a 5-year average revenue growth rate of 41.9%, Diamondback Energy Inc. (NASDAQ:FANG) is included among the 11 Best Long Term US Stocks to Buy Right Now.
On May 11, Bernstein analyst Bob Brackett raised the firm’s price recommendation on Diamondback Energy Inc. (NASDAQ:FANG) to $241 from $237. The analyst reiterated an Outperform rating on the shares. The firm said oil markets could still move in several directions from here, including extreme scenarios such as the Strait of Hormuz remaining closed for years. Even so, Bernstein updated its models based on the assumption that conditions would return to normal by mid-year.
On May 7, Truist increased its price goal on FANG to $242 from $222. It kept a Buy rating on the stock. The analyst noted that in Permian activity, Diamondback benefits from seeing about half of the basin’s activity through Viper. The firm also said it did not see anything new on the permitting side but observed that private rigs are being added. Based on those trends, Truist estimates the Permian rig count could rise by 25 to 30 rigs by the end of 2026, according to a research note sent to investors.
Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves, mainly in the Permian Basin of West Texas.
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— Originally published at finance.yahoo.com
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