Wall Street analysts have increased their price targets for Diamondback Energy Inc. (NASDAQ:FANG), reflecting optimism about the company's production in the Permian Basin and potential oil supply disruptions.

Bernstein analyst Bob Brackett raised the price target to $241 from $237 on May 11, maintaining an Outperform rating.

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Truist also upgraded its target to $242 from $222 on May 7, keeping a Buy rating.

Strong Performance and Regional Advantages

Diamondback Energy, an independent oil and natural gas company focused on unconventional onshore reserves in West Texas, has recorded a 41.9% five-year average revenue growth rate.

This places it among the top long-term US stocks to buy.

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Truist analysts noted that Diamondback holds distinct regional advantages, as it monitors roughly half of all basin operations through its subsidiary Viper.

Bernstein highlighted that global oil markets face multiple potential trajectories, including severe disruptions such as an extended closure of the Strait of Hormuz.

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Industry Trends and Rig Count

Market analysts reported that while permitting updates remain unchanged, private drilling infrastructure continues to expand across the Permian Basin.

Based on current trends, Truist projects that the Permian Basin rig count could increase by 25 to 30 additional rigs by the end of 2026.

Diamondback Energy's stock has surged after beating Q1 earnings estimates, further boosting investor confidence.

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Overall, the raised price targets reflect a positive outlook for Diamondback Energy amid steady production and favorable market conditions.