KeyBanc has updated its outlook on Matador Resources (MTDR, Financial), reducing the stock's price target from $72 to $60 while maintaining an Overweight rating. This revision comes as the firm re-evaluates its projections ahead of the earnings season, adjusting its forecasts for oil and natural gas prices.
The firm cites current pressures on oil prices as a significant factor for the adjustment, noting that the market appears to be factoring in the most pessimistic scenarios concerning OPEC+ production growth, U.S. oil output, and the potential for a global economic downturn. Despite these challenges, KeyBanc remains more optimistic than the prevailing NYMEX WTI futures strip for oil prices.
In contrast, its outlook for natural gas has improved, driven by unexpected weather patterns and the launch of new LNG export projects, which have helped stabilize the market. Although there is some ongoing concern about continuous production in the Lower 48 states (L48), the firm anticipates that a slowdown in oil production might also lead to a decline in associated gas output.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Matador Resources Co (MTDR, Financial) is $70.59 with a high estimate of $86.00 and a low estimate of $58.00. The average target implies an upside of 70.22% from the current price of $41.47. More detailed estimate data can be found on the Matador Resources Co (MTDR) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Matador Resources Co's (MTDR, Financial) average brokerage recommendation is currently 1.8, 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 Matador Resources Co (MTDR, Financial) in one year is $79.31, suggesting a upside of 91.25% from the current price of $41.47. 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 Matador Resources Co (MTDR) Summary page.
