Piper Sandler has revised its price target for Diamondback Energy (FANG, Financial), reducing it from $240 to $234, but maintains an "Overweight" rating on the stock. The adjustment reflects a complex market environment as the firm anticipates Diamondback's performance leading into the first quarter.
The firm cites ongoing uncertainties and challenges, such as the implications of trade tensions and the broader macroeconomic landscape, combined with an increase in OPEC+ oil supply and fluctuating seasonal gas prices. These factors contribute to a volatile market, which could present buying opportunities for companies like Diamondback Energy that boast low-cost inventories and sound financial health.
Despite the turbulence, Piper Sandler suggests a preference for oil over gas investments approaching the first quarter, influenced by market trends and positioning strategies that typically affect short-term outcomes. This indicates a slightly more favorable outlook for oil-related assets in the near term.
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 46.26% from the current price of $132.35. 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 24.83% from the current price of $132.35. 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.
