Oil & Gas Exploration: Sitio Royalties Receives Strong Buy Rating as Crude Prices Soar

Piper Sandler's Mark Lear raised their price target on Sitio Royalties (NYSE: STR) by 3.7% from $27 to $28 on 2024/04/19. The analyst maintained their Strong Buy rating on the stock.

The price target update was part of a Q1 preview of names in Piper Sandler's Energy (Oil & Gas Exploration & Production) portfolio. Lear highlighted the current state of the oil market, stating that "Oil has been hot, almost too hot," given that crude at $90 potentially slows down the pace of consolidation. Lear also pointed out that investors looking to capitalize on the data center and power demand theme may turn to gas equities.

In light of these factors, Piper Sandler adjusted its Oil & Gas price models. The updated models now factor in consistently strong crude prices through Q3 and gas pricing pressure persisting through the balance of FY 2024.

In addition to the Sitio Royalties update, Lear made changes to other names in Piper Sandler's portfolio on April 19, 2024:

- Piper Sandler's Mark Lear lowered their price target on Southwestern Energy Co by -12.5%, from $8 to $7, and downgraded the stock from Strong Buy to Hold. - Piper Sandler's Mark Lear raised their price target on Apa Corp by 6.1%, from $33 to $35, and maintained their Hold rating. - Piper Sandler's Mark Lear raised their price target on Northern Oil & Gas Inc by 10.5%, from $38 to $42, and maintained their Hold rating. - Piper Sandler's Mark Lear lowered their price target on Vital Energy Inc by -3.7%, from $54 to $52, and maintained their Hold rating. - Piper Sandler's Mark Lear raised their price target on Chord Energy Corp by 5%, from $219 to $230, and maintained their Strong Buy rating.

Analyzing the overall sentiment of analysts towards Sitio Royalties (STR), it is worth noting that 100% of top-rated analysts currently rate the stock as a Strong Buy or Buy. No analysts see it as a Hold, and none recommend or strongly recommend selling the stock.

Looking at Sitio Royalties' performance, the stock price has increased by 2.2% since its last quarterly report on December 31, 2023. However, when comparing the stock's performance year-over-year, it is down 5%. During this period, Sitio Royalties (STR) has been trailing the S&P 500, which is down 19.6%.

Piper Sandler analyst Mark Lear is highly regarded within the industry. WallStreetZen ranks Lear in the top 2% out of 4,555 Wall Street analysts, with an impressive average return of 12.9% and a win rate of 65.8%. Lear specializes in the Energy and Consumer Cyclical sectors.

Sitio Royalties (NYSE: STR) is a company engaged in the provision of oil and gas minerals. Headquartered in Philadelphia, Pennsylvania, the firm currently employs 8 full-time employees. Sitio Royalties owns mineral rights positions in the core-of-the-core of the Eagle Ford Shale, with mineral, royalty, and over-riding royalty interests covering over 251,000 gross unit acres in the Eagle Ford and Austin Chalk in Karnes County, DeWitt County, and Gonzales County Texas. The company boasts a significant number of drilling locations, with over 3,000 available.

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