BofA upgraded Diamondback Energy to Neutral from Underperform with a price target of $170, up from $129, after Diamondback confirmed that it has agreed to acquire privately held Endeavor for $26B, split $8B in cash and 117.3M Diamondback shares. Diamondback is “using valuable currency to significantly improve its portfolio depth,” likely with options to high grade its portfolio potentially through asset sales in the Delaware, the analyst tells investors. With the acquisition terms confirmed, the firm sees significant EPS, cash flow per share and free cash flow per share accretion, the analyst added.
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