Benchmark reiterates Buy rating on Matador Resources stock, maintains $62 target
Investing.com
Published Jul 11, 2025 09:18AM ET
Investing.com - Benchmark maintained its Buy rating on Matador Resources Company (NYSE:MTDR) stock on Friday, keeping its price target unchanged at $62.00. The $6.5 billion market cap company currently trades at an attractive P/E ratio of 7x and, according to InvestingPro analysis, appears undervalued based on its Fair Value estimate.
The research firm adjusted its second-quarter EBITDA estimate for the oil and gas producer to $572 million, up from its previous estimate of $556 million, citing an adjustment to the company's oil production mix.
Benchmark noted that its revised oil production forecast is now in line with Matador's own guidance for the quarter.
The current consensus estimate for Matador's second-quarter EBITDA stands at $581 million, slightly higher than Benchmark's revised projection.
Matador Resources Company operates primarily in the Delaware Basin portion of the Permian Basin in West Texas and New Mexico, focusing on oil and natural gas exploration and production. The company maintains an overall "GREAT" financial health rating according to InvestingPro , which offers a comprehensive analysis including 7 additional key insights and a detailed Pro Research Report for this stock.
In other recent news, Matador Resources Company has been the focus of multiple analyst ratings and strategic developments. Mizuho has reiterated its Outperform rating with a price target of $73, expecting no significant changes in Matador's 2025 guidance. RBC Capital also maintained an Outperform rating, setting a price target of $62, and highlighted the company's strategic positioning and potential midstream asset IPO. Meanwhile, BofA Securities initiated coverage with a Buy rating and a $56 price target, citing Matador's diverse growth strategies and strong management team.
Matador Resources recently announced several key leadership promotions, with Bryan A. Erman elevated to Co-President, Chief Legal Officer, and Head of M&A, and William D. Lambert promoted to Executive Vice President, Chief Financial Officer, and Head of Strategy. These changes reflect the company's focus on strengthening its strategic and financial operations. Additionally, Matador's management team participated in the RBC Global Energy, Power & Infrastructure Conference, emphasizing the strategic advantages of its midstream asset.
The company is also executing its $400 million share buyback program, marking the first quarter of repurchases. Investors are closely watching this development as an indicator of Matador's approach to share repurchases. Furthermore, Matador is exploring the monetization of its midstream business following the recent combination of its Pronto and San Mateo operations. Despite fluctuations in oil prices, analysts and Matador's management remain optimistic about the company's future prospects.
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Written By: Investing.com
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