UPDATE: CK Cooper Initiates Diamondback Energy at Buy on Valuation

CK Cooper initiated coverage on Diamondback Energy (NASDAQ: FANG) with a Buy rating and a $26 price target.

CK Cooper noted, "We are initiating on the heels of the Company's recently conducted IPO that priced on October 12, 2012, with net proceeds being used to fund a portion of an acquisition, repay debt balances, and to accelerate the development of its properties … The Company is currently trading near its proved value, however, there is significant upside associated with the Company as it accelerates its operated vertical and horizontal programs exclusively targeting oil bearing formations, where a majority of the Company's acreage has been de-risked by the Company or offset operator activity."

Diamondback Energy closed at $16.05 on Wednesday.