FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Lifts View On Shares Of Diamondback Energy To Buy From Hold

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $219, raised $4, reflects a combination of relative valuation, DCF and NAV models. On a relative basis, we apply a 6.5x multiple of projected 2027 EBITDA, in line with FANG's historical forward average, yielding a value of $169 per share. Our DCF model, using free cash flow growth of 6.8% per year for 10 years, 2.0% thereafter, discounted at a WACC of 6.5%, yields intrinsic value of $263 per share. Finally, our NAV model yields a value of $224 per share. We raise our 2026 EPS estimate by $1.15 to $21.46 and 2027's by $4.14 to $14.70. We think WTI crude oil prices have the potential to spike higher in 2026, depending of course on how long the disruption persists in the Middle East, but anticipate relatively weaker pricing in 2027. While a recession is not our base case, we do consider risk of at least a slowdown as highly possible. Shares yield 2.3% and we estimate a 2026 payout ratio - even with the recent 4.8% dividend hike - at just 20%.

Related Articles

Research

Research Alert: CFRA Maintains Hold Opinion On Healthpeak Properties, Inc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target by $2 to $21, reflecting a forward P/FFO of 12.0x our 2026 FFO estimate, a discount to DOC's three-year forward average (10.6x) as headwinds in Lab are likely to continue in 2026 mixed with capital recycling plans early in the year. We lower our 2026 FFO view by $0.02 to $1.75 and increase 2027's by $0.02 to $1.82. DOC successfully executed the IPO of Janus Living, which now trades at a premium multiple relative to DOC. We believe this will accelerate JAN's acquisition ability in the senior housing market. The most surprising note from management was that it sees the lab space likely to grow occupancy by the end of 2026. This is strong outperformance relative to the largest lab focused operator Alexandria Real Estate Equities, with DOC guiding for a 100-bp improvement this year. Boston continues to be the market with the largest oversupply of lab space, but the West Cambridge location specifically is seeing strong demand currently.

$DOC
Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of T. Rowe Price Group, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $10 to $110, valuing TROW shares at 11.3x our 2026 EPS estimate of $9.76 (lowered by $0.34) and at 11x our 2027 EPs estimate of $10.02 (cut by $0.23), versus their one-year average forward multiple of 10.6x and a peer average of 16x, which includes firms with wider margins and better organic growth prospects. TROW posted Q1 adjusted EPS of $2.52 versus $2.23 in the prior year, beating our $2.50 estimate and the $2.35 consensus estimate. However, results were overshadowed by continued structural headwinds. Net outflows of $13.7B were dominated by $22.6B in outflows from equity funds, reflecting the ongoing secular shift away from active equity strategies. AUM declined $65.9B to $1.7T due to outflows and $52.2B in market depreciation. Meanwhile, fee rate compression continued, with the rate falling to 38.4 bps from 40.0 bps in the prior year. Despite TROW's discounted valuation to peers, we believe the shares lack a near-term catalyst.

$TROW
Research

Research Alert: Otex Delivers Q3 Beats; Enterprise Cloud Bookings Accelerates.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OTEX reported Q3 revenue of $1.283B, growing 2.2% Y/Y and beating consensus by $10M, while non-GAAP EPS of $1.01 exceeded estimates by $0.09 and grew 23.2% Y/Y. Cloud revenue rose 6.6% to $493M with enterprise cloud bookings accelerating 29.6% to $196M, marking the 21st consecutive quarter of cloud organic growth. The enterprise cloud bookings acceleration suggests OTEX's "Enterprise Information Management for AI" positioning is gaining customer traction amid the enterprise AI transition. The completion of CEO transition with Ayman Antoun's April 2026 start removes a key business overhang for the stock. Adjusted EBITDA margin expanded to 34.1% from 31.5% prior year, demonstrating strong operational leverage despite continued AI and cloud investments. We believe the company's disciplined cost management supports margin expansion. The company returned $313M to shareholders including $247M in repurchases, though free cash flow declined 18.4% to $305M on higher capex and working capital changes.

$OTEX