UBS has started its coverage of Matador Resources (MTDR, Financial) with a Neutral rating, setting the price target at $47. The firm cites the company's strategic growth through consolidation, enhanced capital efficiency, substantial 90% dividend growth since the first quarter of 2021, and the potential of the San Mateo asset as notable strengths.
Despite these positive factors, UBS analysts suggest that the current stock valuation already incorporates these elements. Additionally, the analysts emphasize that the prevailing lower crude oil prices could restrict any further upward re-rating of the company's shares.
