Raymond James has revised its price target for Diamondback Energy (FANG, Financial), lowering it from $214 to $190, while maintaining a Strong Buy rating on the company's shares. This adjustment comes in response to significant changes in the energy sector's landscape since the beginning of the year.
The market has faced a new reality, with oil prices dropping approximately $10 per barrel since exploration and production companies reported their fourth quarter results in late February. This decline is attributed to complex global factors, including trade tensions and decisions by OPEC and its allies, which have created a challenging environment for the industry.
The firm notes that amidst this volatility, many management teams are adopting a cautious "wait and see" strategy. However, Raymond James anticipates that its coverage of exploration and production companies, including Diamondback Energy, will largely meet expectations for the first quarter despite the current challenges.
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.
