Diamondback Energy Inc (FANG)

[Wildbilly]

Diamondback's Fang Might Be Long in Tooth
-- Market Talk

9:20 EDT - There's been uniformity on Diamondback Energy (FANG), with every sell-side investment bank having a buy-equivalent rating on the Wolfberry play oil-and-gas firm. That as its stock has quadrupled since October 2012's IPO, including a 1/3 gain this year. But SunTrust decides it will be the first to leave the bull camp as it downgrades FANG to neutral while dropping its price target $5 to $75. "Following significant outperformance, we wonder where the incremental buyer for the stock will come from. Additionally, we see slight downside to 4Q estimates, with some longer-term productivity concerns." But the investment bank admits if FANG "is able to monetize part of its royalty interest for a big number, there could be upside to our valuation." It rose 3.7% Monday to $70.12. ([e-mail]; @kevinkingsbury)
(END) Dow Jones Newswires
April 15, 2014 09:20 ET (13:20 GMT)
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