KeyBanc analyst Tim Rezvan has revised the price target for Diamondback Energy (FANG, Financial), setting it at $180, down from the previous target of $216. Despite the adjustment, the firm maintains an Overweight rating on the company's shares.
The update comes as KeyBanc prepares its first-quarter estimates ahead of the earnings season, with a reduction in its oil price forecast and an increase in its natural gas price forecast. The firm notes that current oil prices are under significant pressure due to pessimistic views on OPEC+ growth, U.S. oil production, and the possibility of a global recession, stating that they still stand above the NYMEX WTI futures strip.
In terms of natural gas, KeyBanc highlights unexpected weather patterns, including the lack of polar vortexes, and the commencement of new LNG export projects as factors contributing to market stabilization. While there is some concern about the persistent production in the lower 48 states, KeyBanc anticipates that a slowdown in oil production could help control associated gas output.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 28 analysts, the average target price for Diamondback Energy Inc (FANG, Financial) is $193.58 with a high estimate of $242.00 and a low estimate of $145.00. The average target implies an upside of 40.64% from the current price of $137.64. More detailed estimate data can be found on the Diamondback Energy Inc (FANG) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, Diamondback Energy Inc's (FANG, Financial) average brokerage recommendation is currently 1.9, 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 Diamondback Energy Inc (FANG, Financial) in one year is $165.21, suggesting a upside of 20.03% from the current price of $137.64. 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 Diamondback Energy Inc (FANG) Summary page.
