Diamondback Energy (FANG) Update - July 20

[dan_s]

A few days before we publish the newsletter, I double check all of the Sweet 16 and Small-Cap Growth Portfolio forecast/valuation models. In case you are wondering why I am posting all of the company updates.

So far in July, five Wall Street firms have updated their valuations / price targets for FANG. The new valuations range from $164 to $181 per share.

On July 12, 2018 Diamondback Energy Price Target Raised to $176.00/Share From $163.00 by Morgan Stanley

I have updated my forecast/valuation model for FANG and I've raised by valuation by $11 to $165/share. One reason that I am doing this is because I got a new report from Raymond James this morning where they take a hard look at each one of the Permian Basin public companies that they follow and estimate their exposure to the Permian Basin takeaway capacity issue. Per RJ, 70% of FANG's production is not exposed to the problem and should sell at close to WTI prices. RJ's adjusted valuation for the stock is $166/share.

My updated model will be available on the EPG website late this afternoon.