UBS Believes Diamondback Energy (FANG) is Poised for a 2026 Breakout Following Period of Stagnation

Group 1 - Diamondback Energy Inc. is considered one of the most profitable value stocks currently, with UBS raising its price target to $194 from $174 while maintaining a Buy rating [1] - The Energy sector is expected to experience a breakout in 2026, driven by a positive outlook for oil and gas prices, M&A activity, and disciplined capital spending [1] - In Q3 2025, Diamondback Energy reported adjusted earnings of $3.08 per share, exceeding analyst estimates of $2.94, with revenues of $3.92 billion, reflecting a year-over-year increase of 48.36% [3] Group 2 - JPMorgan has lowered its price target for Diamondback Energy to $159 from $166, while maintaining an Overweight rating, citing supply-side risks for oil and liquids [2] - JPMorgan believes that a demand inflection for natural gas is underway, despite warnings of potential downward pressure on oil prices due to crude oil oversupply [2] - Diamondback Energy's operational efficiency has improved, with average oil production reaching 503,800 barrels per day, and management has set a new production baseline of 510,000 barrels per day for 2026 [3]