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

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