RBC Capital initiated coverage on Black Stone Minerals (BSM) with a Sector Perform rating and a price target of $16.00.
The company's portfolio is about 76% gas-weighted, driving a valuation discount. Joint exploration agreements enhance growth visibility.
Analyst Scott Hanold set the target at $16, up from the current $13.31. Bond.az analysis suggests the stock is undervalued with a fair value of $14.79.
BSM trades at a P/E of 10.53 and PEG of 0.28. Despite sector headwinds, Black Stone offers a compelling 9.02% dividend yield, having maintained payments for 12 years.
