Roth Capital Maintains Neutral On Diamondback Energy, Increases PT To $91
In a research note issued today, Roth Capital analyst Joseph Reagor maintained a Neutral rating on Diamondback Energy, Inc. (FANG) and raised his price target to $91.00 (from $77.00) following FANG’s subsidiary Viper Energy Partners (VNOM) IPO.
“We find the market valuation of Viper difficult to ignore and, as we do not cover Viper, have elected to treat it as an equity investment in our valuation of FANG. On an accounting basis FANG intends to account for it as a minority interest deduction and our earnings and revenue estimates reflect this. In order to compensate for the difference in the equity value and the valuation derived by our forward estimates we have assigned a $718 million premium to our FANG NAV.
According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Joseph Reagor currently has a one-year average return of 10.7% and a 100% success rate. He is ranked #1239 out of 3114 analysts.