Gabriele Sorbara, an analyst from Siebert Williams Shank & Co, maintained the Buy rating on Diamondback (FANG – Research Report). The associated price target remains the same with $230.00.
Gabriele Sorbara has given his Buy rating due to a combination of factors that highlight Diamondback’s strong operational execution and financial outlook. The company reported a robust quarter with production exceeding expectations and lower spending, resulting in free cash flow significantly surpassing estimates. Additionally, Diamondback’s pro forma 2025 outlook is promising, with lower capital expenditure and potentially conservative oil production guidance, which suggests room for upward revisions.
Moreover, the company’s strong free cash flow guidance of over $5.9 billion at $70 per barrel WTI is notably higher than both the analyst’s and consensus estimates. Diamondback’s assets in the Permian Basin, bolstered by the recent acquisition of Double Eagle IV, position the company well for sustainable free cash flow yield. Despite slightly lower oil production guidance for the first quarter of 2025, the lower capital expenditure is seen as a positive development, alleviating investor concerns about higher spending.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $240.00 price target.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FANG in relation to earlier this year.