B.Riley FBR Sticks to Their Hold Rating for Diamondback

By Ryan Adsit

B.Riley FBR analyst Rehan Rashid reiterated a Hold rating on Diamondback (NASDAQ: FANG) today and set a price target of $150. The company’s shares closed yesterday at $122.83.

Rashid observed:

“We reiterate our Neutral rating and a 12-month price target of $150/share on Diamondback Energy, Inc. (FANG). We believe that FANG’s acquired Delaware Basin acreage positions the company well to deliver strong relative and absolute growth through 2020. However, we await further execution of development and appraisal drilling planned for the year to gain added comfort with FANG’s growth trajectory and inventory depth.”

According to TipRanks.com, Rashid is a 3-star analyst with an average return of 11.7% and a 60.0% success rate. Rashid covers the Basic Materials sector, focusing on stocks such as Continental Resources, Petroquest Energy Inc, and Lonestar Resources US.

Currently, the analyst consensus on Diamondback is Strong Buy and the average price target is $142.53, representing a 16.0% upside.

In a report released yesterday, Williams Capital also reiterated a Hold rating on the stock with a $137 price target.

Based on Diamondback’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $399 million and quarterly net profit of $115 million. In comparison, last year the company earned revenue of $185 million and had a net profit of $25.6 million.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock.

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Diamondback Energy, Inc. operates as oil and natural gas company. It engages in the acquisition, development, exploration and exploitation of unconventional, onshore oil, and natural gas reserves. The company was founded in December 2007 and is headquartered in Midland, TX.