Diamondback Energy: Raymond James raises PT to $221 from $204, maintains Strong Buy.

Diamondback Energy: Raymond James raises PT to $221 from $204, maintains Strong Buy.

Diamondback Energy (FANG) has received a positive update from Raymond James, which has raised its price target (PT) to $221 from $204 while maintaining its "Strong Buy" rating [1]. This move comes amidst a broader market uptick and follows recent earnings reports that have shown strong performance.

The stock has been volatile, with a 6.83% drop in the past month, lagging behind the S&P 500's gain of 3.97%. However, the company is expected to report earnings on August 4, 2025, with an EPS prediction of $2.57, indicating a 43.14% decline compared to the same quarter last year. Despite this, the revenue is predicted to increase by 35.82% to $3.37 billion.

Investors should also note the recent increase in institutional holdings. Allworth Financial LP raised its stake by 236.3% in the first quarter, while other hedge funds like Proficio Capital Partners LLC and Sequoia Financial Advisors LLC also increased their holdings. This indicates growing confidence among institutional investors.

Raymond James' decision to raise the PT follows a series of positive analyst reports. Morgan Stanley, Raymond James Financial, Barclays, KeyCorp, and Piper Sandler itself have all issued positive ratings or adjusted their price objectives. The average rating on the stock is currently "Buy" with an average price target of $193.35 [2].

The company's valuation remains attractive, with a Forward P/E ratio of 11.14, which is a discount compared to the industry average of 11.44. Diamondback Energy operates in the Oil and Gas - Exploration and Production - United States industry, which ranks in the bottom 24% of all industries.

Despite the positive analyst sentiment, the stock's performance over the past month has been mixed. It has been trading in a range between $114.00 and $214.50, with a current market cap of $42.17 billion. The company's debt-to-equity ratio stands at 0.31, indicating a relatively healthy financial position.

Investors should continue to monitor Diamondback Energy's earnings reports and analyst revisions for any changes in the stock's trajectory. The company's focus on the Permian Basin and its strong performance in the oil and natural gas sector make it an attractive investment for those looking for exposure to the energy sector.

References:
[1] https://www.nasdaq.com/articles/diamondback-energy-fang-stock-falls-amid-market-uptick-what-investors-need-know-0
[2] https://www.marketbeat.com/instant-alerts/filing-allworth-financial-lp-purchases-2722-shares-of-diamondback-energy-inc-nasdaqfang-2025-07-14/