In a recent analysis, Barclays has adjusted its price target for Viper Energy (VNOM, Financial), lowering it from $60 to $57 while maintaining an Overweight rating. This update is part of a broader assessment of the integrated oil and exploration and production sector as the market heads into the first quarter.
Attention is being drawn to the overarching macroeconomic conditions, especially the performance of companies with low break-evens and robust balance sheets, which are expected to demonstrate resilience in the context of a persistently low oil price environment.
Furthermore, Barclays has revised its long-term outlook for future oil prices, projecting an average of $60 per barrel in 2025 and $65 in 2026. Despite these adjustments, the firm notes that uncertainties remain prevalent in the market landscape.
