Analysts at KeyBanc have revised their price target for Diversified Energy (DEC, Financial), lowering it from $21 to $17, while maintaining an Overweight rating on the shares. This adjustment comes as the firm reevaluates its first-quarter estimates in anticipation of the upcoming earnings season.
The firm has adjusted its forecast, predicting a decrease in oil prices, which they believe are currently burdened by negative expectations regarding OPEC+ growth, U.S. oil production, and potential global recession scenarios. Despite these challenges, KeyBanc's outlook remains more optimistic than the current NYMEX WTI futures market.
Conversely, KeyBanc has increased its forecast for natural gas prices. Recent weather conditions, including a lack of severe polar vortexes, and new LNG export initiatives have contributed to a more favorable market environment. Although they express some concern about persistent production levels in the Lower 48 states, the firm suggests that a slow down in oil output could also ease gas production levels.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Diversified Energy Co PLC (DEC, Financial) is $20.88 with a high estimate of $29.00 and a low estimate of $14.50. The average target implies an upside of 77.66% from the current price of $11.75. More detailed estimate data can be found on the Diversified Energy Co PLC (DEC) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Diversified Energy Co PLC's (DEC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Diversified Energy Co PLC (DEC, Financial) in one year is $17.21, suggesting a upside of 46.47% from the current price of $11.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Diversified Energy Co PLC (DEC) Summary page.
