Viper Energy initiated with an Outperform at Mizuho

Mizuho analyst William Janela initiated coverage of Viper Energy (VNOM) with an Outperform rating and $56 price target. The company “enjoys a distinct advantage” given its alignment with Diamondback Energy (FANG), which provides “superior” development visibility, the analyst tells investors in a research note. The firm says this relationship helps mitigate the most significant risk inherent to royalty companies. This is a key differentiator and should give investors more confidence in Viper’s future production and cash flow relative to peers, contends Mizuho.