E&P Stocks: Rating Upgrades for the Week Ending August 17

SRC Energy 

Last week, SRC Energy (SRCI) saw a rating downgrade and a target price cut from Baird Equity. Baird Equity downgraded SRC Energy to “neutral,” which is equivalent to “hold” from “outperform,” which is equivalent to “buy.” Baird Equity reduced the target price to $10 from $14. Now, 59.1% of the analysts rate SRC Energy as a “buy,” while 40.9% rate it as a “hold.” Currently, SRC Energy is trading below the low range ($10) of analysts’ target price. The company’s average target price of $14.2 offers ~51% upside from the current price levels.

E&P Stocks: Rating Upgrades for the Week Ending August 17

Diamondback Energy

Diamondback Energy (FANG) saw a rating downgrade and several target price updates following the acquisition announcement. BMO Capital Markets lowered Diamondback Energy to “market perform,” which is equivalent to “hold” from “outperform,” which is equivalent to “buy.” The target price updates include increases and decreases:

  • J.P. Morgan: $145 from $146
  • Suntrust Robinson: $175 from $170
  • Northland Capital: $175 from $165
  • Morgan Stanley: $164 from $176
  • BMO Capital Markets: $135 from $150

Now, 90.3% of the analysts rate Diamondback Energy as a “buy,” while 9.7% rate it as a “hold.” Diamondback Energy’s average target price of $165.4 implies ~37% upside potential from the current price levels.

Energen 

Similar to Diamondback Energy, Energen (EGN) saw a target price update following the acquisition announcement. Raymond James and RBC Capital Markets increased Energen’s target price to $91 from $88 and $81 from $74, respectively. Now, 56.5% of the analysts rate Energen as a “buy,” while 43.4% rate it as a “hold.”

For details on Viper Energy Partners’ (VNOM) rating updates last week, read Midstream Stocks Ended in the Red Last Week.