UPDATE: Wunderlich Securities Reiterates On Diamondback Energy As VNOM Provides Value Creation

In a report published Tuesday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating on

, and raised the price target from $85.00 to $110.00. In the report, Wunderlich Securities noted, “Diamondback Energy (FANG) continues to move forward in the Midland Basin where it has become a premier operator of horizontal wells. Additionally, the company has shown its ability to create and boost the value of its assets through the recent public offering of a portion of its mineral rights in the Permian. "The newly formed vehicle, named Viper Energy Partners (VNOM-NR), was very well received and shows the value of acreage and exposure to the Permian Basin. While the deal makes Diamondback continue to look compelling from a valuation standpoint, it also provides a long-term financing vehicle that Diamondback can use to fund its active drilling program going forward. This causes us to move our price target up again from $85 to $110 as the story continues to move forward.” Diamondback Energy closed on Monday at $88.80.