Analyst Actions: Diamondback Energy Coverage Initiated at Credit Suisse; Shares Rise 3%

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Coverage of Diamondback Energy, Inc. ( FANG ) has been initiated at Credit Suisse with a rating of Outperform and a price target of $25 a share.

"We derive our target from our 'PD Plus' NAV estimate, which is driven by FANG's deep vertical Wolfberry inventory and incorporates value for horizontal Wolfcamp development," said Credit Suisse in its report.

"Potential upside to our NAV would come from additional stacked horizontal targets on its ~51k net acres in the Midland Basin and acceleration beyond a six-rig program."


The analyst group added that "with proceeds from the October IPO, FANG expects to increase its rig count to six from two, and as a result of accelerating activity, we project peer leading production and cash flow growth through 2014."

FANG is up 2.5% to $171.3 and is trading within a 52-week range of $16.09 - $18.28.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: FANG

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