BofA Launches Matador Resources (MTDR) with a Buy Rating

The stock of Matador Resources Company (NYSE:MTDR) was recently launched by BofA with a Buy rating. Let’s shed some light on the development.

A pipeline snaking its way through the hills and valleys of the Delaware Basin.

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 a particular emphasis on shale plays and other unconventional plays.

On May 19, 2025, BofA initiated coverage of Matador Resources Company (NYSE:MTDR) with a Buy rating, accompanied by a price target of $56. The analyst highlighted various reasons behind the positive outlook, including developing its low breakeven E&P assets in the $37-$43 WTI range, stock buybacks, expanding its midstream footprint, and inorganic growth.

BofA’s Noah Hungness claims that Matador Resources Company (NYSE:MTDR) is ‘agile when it needs to be’ and its strong execution is reflected in its impressive 21.7% revenue growth over the last twelve months. Moreover, the company has recently stated that it will drop from nine rigs to eight by mid-year as a result of the plunging oil prices and bleak demand outlook. The move will save it around $100 million in capital expenditure and help to generate an additional $71 million of free cash flow with the WTI crude price at $60 per barrel.

Matador Resources Company (NYSE:MTDR) reported strong results for its Q1 2025 last month, posting an adjusted EPS of $0.99 and beating estimates by $0.21. The company’s revenue also grew by more than 28% YoY to around $1 billion, topping expectations by $57.4 million.

While we acknowledge the potential of MTDR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than MTDR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.