Barclays has adjusted its stance on Sitio Royalties (STR, Financial), upgrading the stock from Underweight to Equal Weight, while modifying its price target to $21, down from the previous $23. The firm sees Sitio Royalties as better positioned compared to other oil-weighted exploration and production entities, particularly in the current low oil price climate. This favorable view is attributed to Sitio's robust royalty model and significant exposure to the Permian Basin.
The analyst at Barclays highlighted the resilience of royalty models during periods of fluctuating commodity prices, implying that Sitio's strategic foundation may offer stability against the backdrop of market volatility. This upgrade reflects a recognition of the unique advantages Sitio holds in relation to its competitors in the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Sitio Royalties Corp (STR, Financial) is $26.43 with a high estimate of $30.00 and a low estimate of $23.00. The average target implies an upside of 57.78% from the current price of $16.75. More detailed estimate data can be found on the Sitio Royalties Corp (STR) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Sitio Royalties Corp's (STR, Financial) average brokerage recommendation is currently 2.4, 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 Sitio Royalties Corp (STR, Financial) in one year is $15.19, suggesting a downside of 9.31% from the current price of $16.75. 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 Sitio Royalties Corp (STR) Summary page.
