12 Best Crude Oil Stocks to Buy as Tensions Rise

7. Matador Resources Company (NYSE:MTDR)

Number of Hedge Fund Holders: 32

Upside Potential as of February 13: 19.49% 

Matador Resources Company (NYSE:MTDR) is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States, with an emphasis on shale and other unconventional plays.

Matador Resources Company (NYSE:MTDR) had a setback on January 27 when Wells Fargo downgraded the stock from ‘Overweight’ to ‘Equal Weight’, while also trimming its price target from $71 to $47. The analyst believes that MTDR’s valuation ‘increasingly incorporates a range of structural considerations’, including higher capital intensity, variability in recent productivity trends, and a growth‑oriented strategy in a market that favors discipline.

Wells Fargo noted that while the energy company’s progress on capital efficiency or midstream monetization could help improve investor sentiment, the stock offers a more balanced risk/reward at current levels compared to industry peers.

Similarly, earlier on January 23, Morgan Stanley analyst Devin McDermott also reduced the firm’s price target on Matador Resources Company (NYSE:MTDR) from $56 to $52, but maintained its ‘Equal Weight’ rating on the shares. The lowered target still indicates an upside of over 10% from the current levels.