Sitio Royalties initiated with a Buy at Truist

Truist initiated coverage of Sitio Royalties with a Buy rating and $29 price target. Sitio is a royalty interest Up-C structure that owns minerals, notes the firm, which believes that the company plans to use its scale and M&A expertise to consolidate the fragmented minerals sector, focusing largely on the Permian Basin and likely other oily plays. The firm believes Sitio plans to continue to pay a strong distribution, noting that its current dividend yield is nearly 9%, while improving its balance sheet to be used for further deals.