Matador Resources (MTDR) Upgrade - Dec 30

[dan_s]

Matador Resources Company (MTDR, $12.00, Buy with PT of $16.00)
Neal Dingmann at Truist Financial has increased his price target by $3 to $16
12/30/2020

Prime Position for 2021 and Ideal 2022 Takeover Target
- Matador is one of very few E&Ps we forecast will have 2021 growth and FCF while spending sequentially less as both the upstream and midstream segments have reached critical inflection points. The company did not bow to prior short-term investor pressure to quit spending in order for immediate cash flow which we believe leaves the future enterprise value better because of it. 4Q20 likely had very limited new D&C, as expected, which will result in material FCF and we forecast 2021 to be the first sustainable year of FCF, though we forecast amounts of FCF to be lumpy throughout the year.

My valuation of MTDR is $15.