Analyst Predicts Modest EBITDA Beat for Diamondback Energy

Mizuho's Nitin Kumar raised their price target on Diamondback Energy (NASDAQ: FANG) by 8.5% from $200 to $217 on April 11, 2024. The analyst maintained their Strong Buy rating on the stock.

Kumar's price target hike was delivered in a preview of Diamondback Energy's Q1 2024 earnings, scheduled for release on May 1, 2024. The analyst predicted that operating cost reduction and gas hedging would return a "modest" 7% EBITDA beat.

This update from Kumar follows ScotiaBank's Paul Cheng, who also issued an update on FANG on April 11, 2024. Cheng raised their price target by 21.4%, from $210 to $255, and maintained their Buy rating on the stock.

Looking at the overall sentiment among analysts, 81.3% of top-rated analysts currently rate FANG as a Strong Buy or Buy. 18.8% see it as a Hold, and no analysts either recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that FANG's upcoming year will deliver earnings per share (EPS) of $22.04. If the analysts are right, FANG's next yearly EPS will be up by 27.1% on a year-over-year basis.

In terms of performance, FANG's stock price has seen a significant increase since its last quarterly report on December 31, 2023. It is up 34.3% since then and up 43.5% year-over-year. During this period, FANG has outpaced the S&P 500, which is up 26.5%.

Mizuho analyst Nitin Kumar, who issued the recent price target hike, is ranked by WallStreetZen in the top 1% out of 4,542 Wall Street analysts. Kumar specializes in the Real Estate and Energy sectors and has an average return of 15.8% and a 63.8% win rate.

Diamondback Energy, Inc. is an independent oil and natural gas company that focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. The company's total acreage position in the Permian Basin is approximately 524,700 gross acres, with estimated proved oil and natural gas reserves of 1,788,991 thousand barrels of crude oil equivalent. Diamondback Energy also owns and operates midstream infrastructure assets, including crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system in the Permian Basin.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.