Diamondback Energy resumed with a Buy at Goldman Sachs

Goldman Sachs resumed coverage of Diamondback Energy (FANG) with a Buy rating and $227 price target implying 28% upside to current levels. The company continues to offer a “prudent” capital allocation strategy focused on per share growth in shareholder returns, which will continue to create shareholder value, the analyst tells investors in a research note. The firm says the recently closed merger with Endeavor Energy presents significant improvement in inventory, with room for incremental improvements in capital efficiency at scale.