Viper Energy (NASDAQ:VNOM) received a reiterated Buy rating from Truist Securities, with analysts maintaining their $68 price target, citing strong production growth and free cash flow potential despite recent stock underperformance.
Over the past 60 days, Viper shares have dropped approximately 15%, underperforming both the S&P 500 (-6%) and other mineral companies. Truist attributes this decline to a mix of macroeconomic factors and company-specific pressures, though it believes the sell-off is unwarranted given Viper’s robust inventory position and above-average production outlook.
Looking ahead to 2025, Truist forecasts Viper’s production to surge nearly 60% year-over-year, fueled by organic activity and the recent Endeavor asset acquisition. The firm sees significant upside in both production volumes and free cash flow growth, positioning Viper Energy ahead of its peers in the mineral and energy space.
With a strong asset base and accelerating production, Truist remains bullish on Viper’s long-term trajectory, viewing the recent pullback as a compelling buying opportunity.