UPDATE: Wunderlich Securities Upgrades Diamondback Energy to Buy, Raises PT on Strong Horizontal Well Result, Recent Equity Offering

In a report published Thursday, Wunderlich Securities analyst Jason A. Wangler upgraded the rating on Diamondback Energy

from Hold to Buy, and raised the price target from $25.00 to $35.00. In the report, Wangler noted, “Diamondback Energy (FANG) has proven its mettle in the short amount of time it has been a public company as the asset base has performed nicely under management's watch. During the initial public offering in October 2012, we were optimistic about the horizontal drilling program improving the economics in the Permian but had few results to go on. Further, the financials of Diamondback were a bit of a concern as the liquidity position seemingly would become an issue into 2013 based on expected activity levels. We believe the company's strong results from 13 Wolfcamp B-targeted horizontal wells, including 11 operated, shows the operational expertise, asset strength and horizontal potential for Diamondback, while the recent equity offering puts it in a position to fund/accelerate its growth.” Diamondback Energy closed on Wednesday at $29.48.