William Blair starts Diversified Energy's coverage with 'outperform'

Diversified Energy

18/11/2025 13:56

** William Blair starts coverage on Diversified Energy DEC.N with "outperform" rating, highlighting its asset-backed securitization financing strategy and strong cash flow stability

** "We expect another large accretive acquisition to be announced," brokerage says

** Brokerage expects DEC to generate free cash flow of $414 million in 2026, forecasts it to jump to nearly $450 million in 2028

** "There is potential for higher free cash flow yields in 2028 due to potentially higher commodity prices and overall capital efficiency initiatives," William Blair says

** Five of six brokerages rate stock "buy" or higher, one "hold"; median PT is $18.50 - data compiled by LSEG

** Up to last close, stock down ~9% YTD

 (Reporting by Dharna Bafna in Bengaluru)

 ((dharna.bafna@thomsonreuters.com))