Rattler Midstream LP (RTLR) Gets a Buy Rating from Northland Securities

By Jason Carr

Northland Securities analyst Jeff Grampp maintained a Buy rating on Rattler Midstream LP (RTLRResearch Report) today and set a price target of $24. The company’s shares closed on Friday at $19.21.

Grampp said:

“We are initiating on Rattler Midstream (RTLR) with an OP and $24 PT, fresh off its May 2019 IPO. RTLR is a pure-play Permian Basin midstream company backed by top-tier Permian Basin E&P pure-play, Diamondback Energy (FANG). RTLR has a strong organic growth outlook (37% EBITDA CAGR 2018-2023) that we believe is relatively low-risk given FANG’s operational track record, low-cost operations and healthy balance sheet. We also like its current 5.2% dividend yield with 15% expected growth. We believe one of RTLR’s largest competitive advantages is its exposure to top-tier operator, FANG. In our view, FANG is one of the lowest-cost, execution-driven E&Ps, which provides a relatively lower-risk growth profile for RTLR when compared to other midstream companies, in our view.”

According to TipRanks.com, Grampp is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -15.0% and a 21.1% success rate. Grampp covers the Basic Materials sector, focusing on stocks such as Sundance Energy Australia, Penn Virginia Corporation, and SilverBow Resources Inc.

Currently, the analyst consensus on Rattler Midstream LP is a Moderate Buy with an average price target of $22.57, implying a 17.5% upside from current levels. In a report released today, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $24 price target.

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The company has a one-year high of $19.67 and a one-year low of $17.49. Currently, Rattler Midstream LP has an average volume of 1.44M.

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Rattler Midstream LP is a holding company, which engages in the operation, development and acquisition of midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. It provides crude oil, natural gas, and water-related midstream services including fresh water sourcing and transportation and saltwater gathering and disposal.