UBS Raises Matador Resources PT to $48, Maintains Neutral Rating

UBS Raises Matador Resources PT to $48, Maintains Neutral Rating

UBS has raised its price target on Matador Resources (NYSE:MTDR) to $48.00, up from the previous $46.00, while maintaining a Neutral rating on the stock [2]. The investment bank anticipates significant developments in Matador's second-quarter update, particularly regarding the future of its San Mateo operations. UBS highlighted that a potential large-scale monetization of San Mateo assets could accelerate Matador's debt reduction efforts or enhance its share buyback program.

Matador Resources has been the subject of various analyst ratings and strategic developments. Benchmark reiterated its Buy rating with a price target of $62, while adjusting its second-quarter EBITDA estimate to $572 million due to changes in the company’s oil production mix [2]. Mizuho maintained an Outperform rating with a $73 price target, noting that Matador’s management is expected to provide insights into its oil price evaluation and activity levels for 2026. RBC Capital reaffirmed its Outperform rating, focusing on the potential monetization of its midstream assets, possibly through an IPO [2]. KeyBanc Capital Markets identified Matador Resources as one of the interesting liquid producers, alongside other companies like EOG Resources (NYSE:EOG) and EXCO Resources [2].

Despite the price target increase, UBS maintained its Neutral stance on Matador stock, citing a preference for gas-focused exploration and production companies over oil-focused ones in the current oil price environment. This cautious approach reflects the ongoing fluctuations in oil prices and the strategic positioning of Matador Resources.

References:
[1] https://seekingalpha.com/news/4467617-matador-resources-declares-0_3125-dividend
[2] https://www.investing.com/news/analyst-ratings/matador-resources-price-target-raised-to-48-by-ubs-on-san-mateo-potential-93CH-4140115