-- 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%.