Sitio Royalties price target lowered to $26 from $31 at Piper Sandler

Piper Sandler lowered the firm’s price target on Sitio Royalties to $26 from $31 and keeps an Overweight rating on the shares. Sentiment for E&P has cooled from the late summer/early fall following M&A frenzy and start of Mid-East war, but the firm sees the pullback offering a better entry entering 2024. With several deals already announced only several weeks into the year, M&A continues to be a key focus though the market is more discerning on value, asset quality and implications for shareholder return, Piper adds.