Truist raises Matador stock price target to $66 on gas outlook

Truist Securities has increased its price target for Matador Resources stock to $66, up from $65, while maintaining a Buy rating. The stock, currently trading at $50.16, has significant upside potential. This adjustment came after the company's third-quarter results were analyzed. Truist attributes this potential to several factors, including improving gas realizations, expansion at San Mateo, and gains in capital efficiency from acquired acreage.

They expect operational efficiencies to offset service-cost inflation. Truist's projections for fiscal 2027 also indicate a 12.9% yield to enterprise value, supporting its continued focus on deleveraging alongside growth investments. Shareholders enjoy a dividend yield of 3.22%, with an impressive 40% increase in dividends over the past year.

Matador has maintained this dividend for six consecutive years. The price target is based on net asset value, and the analysis is supported by InvestingPro Tips. Matador Resources recently surpassed Wall Street's third-quarter expectations, reporting adjusted earnings of $2.08 per share and revenue of $1.16 billion. Despite these strong results, shares fell after hours as investors assessed the sustainability of the recent gas pricing and cash flow improvements.