Diamondback Energy (FANG) Valuation Update - Oct 17

[dan_s]

TipRanks: " On October 16, 2023 Truist Securities analyst Neal Dingmann raised the price target on Diamondback Energy (NASDAQ: FANG) to $215.00 (from $210.00) while maintaining a Buy rating. In the last 3 months, 16 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $181.88."

I have updated my forecast/valuation model for FANG. I am raising my current valuation by $8 to $186 per share, primarily because I believe that FANG is one of the top three Screaming Takeover Targets for any major wanting to acquire a premium Permian Basin company. My valuation multiple increases from 5.25 to 5.5 X annualized operating cash flow per share, which is a lower multiple than what Exxon paid for PXD.

My updated valuation model will be posted to the EPG website this afternoon.