Oppenheimer Sticks to Its Buy Rating for Matador Resources (MTDR)


Oppenheimer analyst Tim Rezvan maintained a Buy rating on Matador Resources (MTDR) today and set a price target of $33. The company’s shares opened today at $18.60.

Rezvan observed:

“We recently hosted two days of investor meetings with management. Meetings focused on the midstream outlook, given how large the segment may become with San Mateo II operational ($200M annual EBITDA run-rate by late ’21). Meetings crystallized the value potential around the 2018 New Mexico BLM acreage acquisition, including how it backstops the San Mateo II JV. In our view, understanding the “glove in hand” fit between this new acreage and midstream growth initiatives is critical to seeing the value uplift potential in MTDR shares. We also saw a candid two- way dialogue with some equity owners about leverage and FCF deficits. Matador’s decision to continue prudent growth and enter into small asset sales (as opposed to decelerating for FCF neutrality) was positively received by investors.”

According to TipRanks.com, Rezvan is a 1-star analyst with an average return of -0.3% and a 46.7% success rate. Rezvan covers the Basic Materials sector, focusing on stocks such as Whiting Petroleum Corp, Gulfport Energy Corp, and Par Pacific Holdings.

Currently, the analyst consensus on Matador Resources is a Moderate Buy with an average price target of $28.17, a 51.5% upside from current levels. In a report issued on February 27, Northland Securities also reiterated a Buy rating on the stock with a $32 price target.

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Based on Matador Resources’ latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $137 million. In comparison, last year the company had a net profit of $38.34 million.

Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MTDR in relation to earlier this year. Earlier this month, Joseph Wm Foran, the Chairman & CEO of MTDR bought 10,000 shares for a total of $150,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Matador Resources Co. is a holding company engages in the exploration, development, production, and acquisition of oil and natural gas resources. It operates through the following segments: Exploration & Production; and Midstream.

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