Sitio Royalties Price Target Increased to $32 Amid Positive Energy Sector Outlook

Truist Securities's Neal Dingmann raised their price target on Sitio Royalties (NYSE: STR) by 10.3% from $29 to $32 on 2024/04/05. The analyst maintained their Strong Buy rating on the stock.

Dingmann's price target revision comes after conducting a detailed analysis of the names in their Energy (Oil & Gas Exploration & Production) portfolio. They cited several factors contributing to their bullish outlook on the sector, including a favorable commodity landscape in 2024, potentially lower oilfield equipment and services pricing, stable routine operations for most companies in the space, and the expectation of maintaining substantial shareholder returns.

In addition to the positive outlook for the energy sector, Dingmann expressed confidence that Truist Securities expects a change in the sector's current underweight positioning. According to discussions held by the firm, only the "Long Onlys" remain underweight on the energy sector compared to Truist Securities' benchmark.

Dingmann's revised price target on Sitio Royalties was accompanied by changes to other names in their portfolio. Matador Resources Co saw a 3.7% increase in their price target, from $82 to $85, while maintaining a Strong Buy rating. Pioneer Natural Resources Co had their price target raised by a significant 16.8%, from $238 to $278, but Dingmann maintained their Hold rating. Coterra Energy Inc faced a downward revision of -10% on their price target, from $30 to $27, while maintaining a Hold rating. Chesapeake Energy Corp had their price target lowered by -5.9%, from $119 to $112, but Dingmann maintained their Strong Buy rating. Lastly, Eqt Corp experienced a -5.4% reduction in their price target, from $37 to $35, while maintaining a Hold rating.

Looking at analyst ratings for Sitio Royalties, it is worth noting that 100% of top-rated analysts currently rate the stock as a Strong Buy or Buy. No analysts consider it a Hold, and none either recommend or strongly recommend selling the stock.

In terms of Sitio Royalties' performance, its stock price has risen by 9.1% since the last quarterly report on December 31, 2023. Year-over-year, the stock has gained 5.3%. However, during this period, Sitio Royalties has underperformed the broader market, with the S&P 500 posting a significant increase of 27.2%.

Neal Dingmann, the analyst responsible for the price target revision, is highly regarded in the financial industry. WallStreetZen ranks Dingmann in the top 1% out of 4,535 Wall Street analysts, boasting an impressive average return of 17.5% and a win rate of 67.5%. Dingmann specializes in analyzing the Consumer Cyclical and Energy sectors, among others.

Sitio Royalties, listed on the New York Stock Exchange under the ticker symbol STR, is a company primarily 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 holdings covering over 251,000 gross unit acres in the Eagle Ford and Austin Chalk in Texas' Karnes County, DeWitt County, and Gonzales County. The company's extensive portfolio includes over 3,000 drilling locations.

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