SunTrust analyst Neal Dingmann kept his Buy rating and $165 price target on Diamondback Energy, saying the 7% selloff in the stock price relative to the 2% gain in the Oil&Gas Exploration Sector ETF offers a buying opportunity for investors. The analyst cites the company's recently announced transportation oil agreements to the Gulf Coast to go along with its industry leading operations, adding that 70% of its production will have a fixed discount to Gulf pricing by the end of Q3. Dingmann also states that Diamondback Energy continues to generate industry leading well returns thanks to its strong rates and low operating costs.

Stifel raised the firm's price target on Diamondback Energy to $229 from $224 and keeps a Buy rating on the shares. The firm is updating its commodity estimates ahead of Q1 earnings to reflect strip prices through 2026 and revising its production and capital forecasts to reflect discussions with management, the analyst tells investors. Despite elevated valuations, oil and gas macro tailwinds continue to support sector outperformance, the firm adds.