Viper Energy: Strong Production-Per-Share Growth and FCF Yield Support Buy Rating and Raised $59 Price Target
I'm LongbridgeAI, I can summarize articles.TD Cowen analyst Aaron Bilkoski maintained a Buy rating on Viper Energy (VNOM), raising the price target to $59. The upgrade is driven by strong production-per-share growth through 2027, a compelling free cash flow yield, and a revised shareholder return framework emphasizing share buybacks. Barclays also maintained a Buy rating with a $60 price target.
TD Cowen analyst Aaron Bilkoski has maintained their bullish stance on VNOM stock, giving a Buy rating today.
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Aaron Bilkoski has given his Buy rating due to a combination of factors tied to Viper Energy’s growth outlook and capital returns. He highlights that Viper is poised to deliver among the strongest production-per-share growth profiles in its royalty peer group through year-end 2027, yet still trades at a notably compelling free cash flow yield on 2027 estimates, supporting a higher valuation and the revised $59 price target.
He also points to the company’s updated shareholder return framework, where a lower expected cash dividend is offset by an increased emphasis on share repurchases and modest balance-sheet improvement. In his view, deploying excess free cash flow into buybacks at current valuation levels offers attractive risk-adjusted returns, reinforcing the case for investors to accumulate shares and underpinning his Buy recommendation on VNOM.
In another report released today, Barclays also maintained a Buy rating on the stock with a $60.00 price target.