LandBridge initiated with an Outperform at Raymond James

Raymond James initiated coverage of LandBridge with an Outperform rating and $34 price target. LandBridge is a unique land play on themes of economic development in the Permian’s Delaware Basin whose revenues fall into surface/royalty, resource sales and oil and gas royalties, providing more earnings stability than typical oil & gas names, without sacrificing growth or requiring material capital intensity, the analyst tells investors in a research note. LandBridge’s financial optionality make future acreage roll-ups realistic, along with moderate dividend growth, the firm argues.