- KeyBanc Capital Markets analyst Tim Rezvan downgraded the rating on Viper Energy Partners LP (NASDAQ:VNOM) to Sector Weight from Overweight.
- The analyst disagrees with VNOM’s fundamental value proposition of prioritizing repurchases over generating distributable cash flow and removed the price target of $37.
- Rezvan is bearish on the intensity of repurchases of VNOM, as witnessed in Q3 and Q4 2022. Amid economic uncertainty and weak oil prices, VNOM’s unit is down 11% year-to-date, and the analyst is skeptical about the viability of the cash return framework.
- Given shorter commodity price cycles, uncertain shale inventory life and ESG headwinds, Rezvan doesn’t expect public markets to rerate public minerals valuations higher.
- Rezvan raised its expectations for 2023 EBITDA to $555.1 million (from $536.7 million, vs. Cons. EBITDA $641.8 million) and EPS to $1.34 from $1.10.
- He now expects 2024 EBITDA of $603.0 million ($616.9 million earlier, vs. Cons. EBITDA $687.7 million) and EPS of $1.36 vs. $1.34 earlier.
- Price Action: VNOM shares are trading lower by 2.92% at $27.26 on the last check Wednesday.
UPDATE: L.B. Foster Q4 Adj. EPS $0.19 Beats $0.03 Estimate, Sales $137.17M Beat $127.35M Estimate
L.B. Foster (NASDAQ:FSTR) reported quarterly earnings of $0.19 per share which beat the analyst consensus estimate of $0.03 by 533.33 percent. This is a 733.33 percent increase over losses of $(0.03) per share from the
