Viper Energy initiated with a Buy at BofA

BofA analyst Kalei Akamine initiated coverage of Viper Energy (VNOM) with a Buy rating and $64 price target. Viper is an oil and gas royalty company with “unique” support from a “strong financial sponsor” in Diamondback Energy (FANG), which holds a 43% stake and is the largest publicly-traded oil producer in the Midland Basin, BofA tells investors. More than half of Viper’s mineral rights derive from Diamondback operated leases, which differentiates Viper from peers that currently have no growth and no more than one year of production visibility, the analyst tells investors.