UPDATE: Canaccord Initiates Diamondback Energy with Buy on Expected Production Growth

In a report published Thursday, Canaccord Genuity analyst Ipsit Mohanty initiated coverage on Diamondback Energy (NASDAQ: FANG) with a Buy rating and $36.00 price target.

In the report, Mohanty noted, “Diamondback Energy (FANG) offers pure-play exposure to the Midland Basin in the Permian. With production growth expected to triple in 2013, a drilling inventory that will only multiply in a multi-stacked play, and a management team focused on capital discipline, FANG in our view presents an attractive risk/reward profile. Our price target of $36 implies a 37% upside over 12 months, with a ‘bull case' of $44.”

Diamondback Energy closed on Wednesday at $27.10.