Raymond James has revised its price target for Viper Energy (VNOM, Financial), cutting it from $58 to $52, while maintaining an Outperform rating on the stock. This adjustment reflects significant changes in the energy landscape since the reporting of Q4 results by Exploration & Production companies in late February.
The oil market has experienced a notable decline, with prices dropping approximately $10 per barrel. This downturn has created a challenging environment for energy firms, as they navigate through the impact of a tariff war and decisions by OPEC+. Consequently, many company management teams are adopting a cautious "wait and see" strategy.
Despite these challenges, Raymond James anticipates that its coverage of Exploration & Production firms will deliver results largely in line with expectations for the first quarter. The firm underscores the importance of monitoring the evolving macroeconomic conditions affecting the oil market.
