Wall Street Analysts’ Ratings after the Diamondback–Energen Deal

Analysts’ rating updates

The Diamondback Energy (FANG)–Energen Corporation (EGN) deal announcement received a mixed reaction from Wall Street analysts. The company saw one rating downgrade, several target price increases, and several target cuts. BMO Capital Markets lowered Diamondback Energy (FANG) to “market perform,” which is equivalent to “hold,” from outperform, which is equivalent to “buy.”

Wall Street Analysts’ Ratings after the Diamondback–Energen Deal

The price target revisions include:

  • 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, 94.0% of analysts rate FANG as a “buy,” and the remaining 6.0% rate it as a “hold.” Among FANG’s peers, Pioneer Natural Resources Company (PXD) and Concho Resources (CXO) have respective “buy” ratings from 87.8% and 72.2% of analysts surveyed by Reuters. FANG’s average target price of $165.70 implies an ~35.0% upside potential from the current price levels.