Energy company Matador Resources (MTDR.US) has a promising outlook, as Bank of America initiates a "buy" rating.

Bank of America Corp recently initiated coverage on Matador Resources (MTDR.US) for the first time with a "buy" rating and a target price of $56. Bank of America Corp analysts have a positive outlook on Matador Resources, citing the company's exploration and production assets (achieving breakeven at WTI prices ranging from $37 to $43), stock buybacks, midstream business expansion, and inorganic growth. Noah Hungness from Bank of America Corp stated that Matador Resources is "able to adapt flexibly when needed," with strong execution reflected in an impressive 21.7% revenue growth over the past 12 months. Additionally, the company recently announced that due to the sharp drop in oil prices and dim demand prospects, it will reduce its drilling rig count from 9 to 8 by mid-year, saving approximately $100 million in capital expenditures and generating an additional $71 million in free cash flow at a WTI crude oil price of $60 per barrel. Matador Resources 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 focus on shale and other unconventional resources. Last month, Matador Resources reported strong first-quarter results for 2025. The data showed that the company's Q1 revenue increased by over 28% year-on-year, reaching around $1 billion, exceeding market expectations; adjusted earnings per share were $0.99, also surpassing market expectations. As of Tuesday's close, Matador Resources was down 0.02% at $44.28. The stock has risen nearly 13% so far this month.