Investing.com – TD Cowen raised its price target on Viper Energy () to $59.00 from $58.00 while maintaining a Buy rating on the shares.
The firm cited the company’s production per share growth profile as a key factor in the price target increase. Viper has delivered one of the highest production per share growth rates in TD Cowen’s royalty coverage universe. This operational momentum is reflected in the company’s remarkable 111% revenue growth over the last twelve months, according to InvestingPro data. An InvestingPro Tip notes that analysts anticipate sales growth to continue in the current year.
TD Cowen forecasts this growth trajectory will continue through year-end 2027. The analyst noted oil-price motivated activity and production tailwinds as supporting factors.
Viper Energy currently trades at a 2027 free cash flow yield of 13%. TD Cowen views this valuation as attractive given the company’s demonstrated historical success. The stock also offers a 6.23% dividend yield. Worth noting, InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value estimate, with access to detailed valuation metrics and 6 additional ProTips available to subscribers.
The firm believes Viper’s above-average growth warrants a higher valuation relative to peers in the royalty sector.
In other recent news, Viper Energy Solutions reported impressive second-quarter 2026 earnings, significantly surpassing Wall Street expectations. The company achieved earnings of $1.78 per share, compared to the anticipated $0.76 per share. Revenue also exceeded forecasts, reaching $677 million against the projected $640.71 million. In addition to these strong financial results, Viper Energy announced a 32% increase in its base dividend. Despite these positive developments, the stock experienced a decline, which may reflect investor considerations around the company’s capital-return policy and the broader energy market conditions. These recent developments highlight Viper Energy’s robust performance in the latest quarter.
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