Sitio Royalties Receives Strong Buy Rating and 7.4% Price Target Increase from KeyBanc

KeyBanc's Tim Rezvan raised their price target on Sitio Royalties (NYSE: STR) by 7.4% from $27 to $29 on 2024/04/22. The analyst maintained their Strong Buy rating on the stock.

Rezvan updated their price target as part of a Q1 2024 preview note on names in their Oil & Gas (Exploration & Production) portfolio. The increased price target for Sitio Royalties reflects the analyst's expectations of rising oil prices driven by geopolitical risk, a decline in U.S. refined product inventories, and flattening U.S. production. On the other hand, Rezvan believes that natural gas prices are likely to decline due to strong production, bloated inventories, and debottlenecking in the second half of 2024.

In addition to Sitio Royalties, Rezvan also made adjustments to other names in their portfolio on April 22, 2024:

- Diamondback Energy Inc: The analyst raised the price target by 7.1% from $210 to $225 and maintained their Strong Buy rating. - Kimbell Royalty Partners LP: Rezvan increased the price target by 5% from $20 to $21 while maintaining their Strong Buy rating. - Vital Energy Inc: The analyst raised the price target by 14.5% from $55 to $63 and kept their Strong Buy rating intact. - Talos Energy Inc: Rezvan adjusted the price target by 5% from $20 to $21, maintaining the Strong Buy rating. - Sm Energy Co: The analyst raised the price target by 4.8% from $62 to $65, while maintaining their Strong Buy rating.

It is worth noting that all top-rated analysts currently view Sitio Royalties as either a Strong Buy or Buy, with no analysts rating it as a Hold. Furthermore, no analysts recommend or strongly recommend selling the stock.

Looking at Sitio Royalties' performance, the stock price has increased by 2.4% since the last quarterly report on December 31, 2023. However, over the past year, the stock has seen a decline of 6.5%. During this period, Sitio Royalties has underperformed the S&P 500, which is down 21.1%.

KeyBanc analyst Tim Rezvan holds an impressive ranking among Wall Street analysts. According to WallStreetZen, Rezvan is in the top 19% out of 4,559 analysts, with an average return of 5.2% and a win rate of 50.7%. Their expertise lies in the Utilities and Energy sectors.

Sitio Royalties, traded on the New York Stock Exchange under the ticker symbol STR, is a company engaged in the provision of oil and gas minerals. The firm, headquartered in Philadelphia, Pennsylvania, currently employs 8 full-time employees. Sitio Royalties owns mineral rights positions in the core-of-the-core of the Eagle Ford Shale. Additionally, the company holds 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. With over 3,000 drilling locations, Sitio Royalties is well-positioned in the industry.

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