Jefferies analyst Mark Lear reinstated coverage of Diamondback Energy with a Buy rating and named it his Franchise Pick in the E&P group, citing his view that the company's recent acquisition have brought scale and core inventory depth to a company that he already considered one of the best operators and consolidators in the Permian basin. He projects Diamondback will deliver 29% pro-forma volume growth and sees "big potential" for operational synergies beyond just well cost reductions from its deal, Lear tells investors. He set a $177 price target on Diamondback shares, down from his prior $181 target prior to pausing coverage.

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.