Viper (VNOM) Valuation Update - May 2

[dan_s]

I have updated my forecast/valuation model for Viper and posted it to the EPG website.
At the time of this post, VNOM was trading at $27.18. < Down because this is a "Fear of the Fed" day.

My current valuation increases by $0.50 to $34.50 per unit.

Viper is a partnership that has elected to be taxed as a C-Corp., so it is appropriate for an IRA account.

TipRanks: "In the last 3 months, 6 ranked analysts set 12-month price targets for VNOM. The average price target among the analysts is $38.00. The 6 price targets range from $33 to $38. This morning Piper Sandler analyst Mark Lear assigned a Buy rating to Viper Energy (VNOM) today and set a price target of $38.00."

The "Base + Variable" dividend was lower than I expected, but the increased production guidance and unit repurchase program is more bullish. Viper has 10% to 15% YOY production growth locked in for 2023 and 2024. This is a solid "Growth + Income" stock to own.