Mizuho Starts Kimbell Royalty Partners LP (KRP) at Neutral

Mizuho analyst William Janela initiates coverage on Kimbell Royalty Partners LP (NYSE: KRP) with a Neutral rating and a price target of $16.00.

The analyst comments "We are initiating coverage of Kimbell Royalty Partners (KRP) with a Neutral rating and $16 price target. KRP holds a diversified royalty minerals portfolio across multiple US basins, with a favorable PDP base decline rate and >10 year future development inventory. However, in an M&A-driven sector where investors are increasingly focused on scale, KRP's gassier/lower margin asset base (compared to Minerals peers) and relative market cap size raise the bar for it to execute on future acquisitions - at a time when its balance sheet leverage is set to increase and the commodity macro environment likely remains volatile. Shares trade at a discount to Royalty peers on 2025-26e EV/EBITDA, though in our view the relative discount appears fair at current levels given KRP's inventory/reserves mix and multi-basin portfolio."

For an analyst ratings summary and ratings history on Kimbell Royalty Partners LP click here. For more ratings news on Kimbell Royalty Partners LP click here.

Shares of Kimbell Royalty Partners LP closed at $14.07 yesterday.

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