William Blair analyst Neal Dingmann has maintained their bullish stance on MTDR stock, giving a Buy rating today.
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Neal Dingmann has given his Buy rating due to a combination of factors that highlight Matador Resources’ operational strengths and financial prospects. The company’s well results have remained robust, maintaining strong production levels while managing to keep capital expenditures lower than expected. This efficient operation is expected to lead to a slight increase in production over the next few quarters, with shareholder returns bolstered by a recent dividend increase and ongoing share buybacks.
Furthermore, Matador Resources is positioned for significant capital efficiency improvements, with production expected to rise and free cash flow anticipated to increase later in the year. The company’s ownership of a premier Permian infrastructure system adds potential value, although no major transactions are expected in the near term. Matador’s shares are currently trading at a favorable valuation compared to peers, with potential for significant upside, suggesting a fair value of $68 per share, representing a 58% increase from current levels.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $71.00 price target.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MTDR in relation to earlier this year.