UPDATE: Morgan Stanley Initiates Coverage On Diamondback Energy On Compelling Investment Opportunity

In a report published Thursday, Morgan Stanley analyst Drew Venker initiated coverage on

with an Overweight rating and $90.00 price target. In the report, Morgan Stanley noted, "FANG warrants a substantial premium given its superior assets, mgmt and balance sheet. It offers oil exposure that should outperform in a sustained downturn and participate in are bound if prices improve." Diamondback Energy closed on Wednesday at $74.92.