In a research report issued today, Roth Capital analyst Joe Reagor reaffirmed a Buy rating on Diamondback Energy (NASDAQ:FANG) with a price target of $77, which represents a potential upside of 19% from where the stock is currently trading.
Reagor noted, “Although we believe FANG is positioned well to operate in a low oil price environment, we are taking a much more conservative approach to future drilling expectations. As a result, we are cutting our price target from $95 to $77, while maintaining our Buy rating. ■ Q3 results essentially in-line. On November 4, 2014 FANG announced its Q3 2014 operating and financial results. Revenue of $139.1 million came in below our estimates mainly due to oil price realizations. Timing of oil production growth resulted in the lower realized price compared to our forecasts. However, EPS came in at $0.79 in-line with our estimate as derivative gains offset lower revenues. Thus, we view the quarter as essentially in line with our expectations.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joe Reagor has a total average return of -19.8% and a 11.1% success rate. Reagor has a -20.0% average return when recommending FANG, and is ranked #3345 out of 3363 analysts.