Vital Energy initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of Vital Energy with an Equal Weight rating and $50 price target. The analyst believes the Vital investment thesis is becoming a more shareholder-friendly story, with a potential inflection point coming by the end of 2024. The firm sees the company’s narrative as a catalyst-rich story moving forward that could lead to a potential re-rating of the stock. However, Vital’s relatively high leverage might act as a ceiling on its valuation, the analyst tells investors in a research note.