Stock Price & Analysis

Based on the analysis of Kimbell Royalty Partners (KRP), the stock is currently oversold with an RSI of 28.2, suggesting potential buying opportunities. However, due to recent downward earnings revisions and its addition to the Zacks Rank #5 (Strong Sell) list, it is recommended to hold KRP stock at this time.

Price Prediction for KRP Stock in 2025

Based on current market trends and analysis, Kimbell Royalty Partners (KRP) is expected to reach a price of $16.50 by the end of 2025.

• Reasoning:
  • The stock is currently oversold with an RSI of 28.2, indicating potential buying opportunities.
  • Analysts have set an average 12-month price target of $18.75, with some raising their targets to as high as $23.00.
  • The stock's low valuation and dividend yield of 11.74% make it attractive for income-focused investors.

The S1 support level for KRP Stock is $13.73 ,The R1 resistant level for KRP Stock is $14.29.

As of the end of day on 2025-03-25, the price of KRP Stock was $14.3.

The target price for KRP Stock according to analyst rating is 19.60, with the highest price target at 24.00 and the lowest at 14.00. Analysts have a Moderate Buy rating on KRP Stock overall.

The market cap of KRP is $1.5B.

Analysis and Insights

Valuation Metrics

KRP's current valuation metrics suggest it may be overvalued. The price-to-earnings (P/E) ratio of 24.77 and enterprise value-to-EBITDA (EV/EBITDA) of 28.82 are significantly higher than industry averages, indicating a premium valuation. Additionally, the price-to-book (P/B) ratio of 2.45 reflects a higher valuation compared to its book value.

Dividend Yield and Sustainability

KRP offers an attractive dividend yield of 11.74%, which is higher than most peers. However, the company's recent net loss of $37.8 million in Q4 2024 raises concerns about the sustainability of these dividend payments.

Earnings and Analyst Sentiment

The company's earnings revisions have been downward, with a 18.3% reduction in consensus EPS estimates over the past 60 days. This negative revision, combined with KRP being added to the Zacks Rank #5 (Strong Sell) list, signals weak investor sentiment and potential underperformance.

Technical Analysis

KRP's stock is currently trading near its 52-week low of $14.295, with an RSI of 28.2, indicating an oversold condition. While this could signal a potential buying opportunity, the broader market sentiment and earnings challenges may outweigh any short-term technical rebound.

Conclusion

Based on the high valuation metrics, downward earnings revisions, and weak analyst sentiment, KRP appears overvalued. While the dividend yield is attractive, the sustainability of payments is uncertain given the net loss in Q4. Investors should exercise caution and consider waiting for improved earnings visibility or a more favorable valuation before investing.

Kimbell Royalty Partners, LP is an oil and gas mineral and royalty company. It owns mineral and royalty interests in over 17 million gross acres in 28 states and in onshore basin in the continental United States, including ownership in more than 129,000 gross wells. Its properties include the Permian Basin, Mid-Continent, Appalachian, Eagle Ford, Bakken, Terryville/Cotton Valley/Haynesville, and DJ Basin/Rockies/Niobrara. The Permian Basin extends from southeastern New Mexico into West Texas. The Mid-Continent is an area containing fields in Arkansas, Kansas, Louisiana, New Mexico, Oklahoma, Nebraska and Texas and including the Granite Wash, Cleveland, and Mississippi Lime formations. The Appalachian Basin covers most of Pennsylvania, eastern Ohio, West Virginia, western Maryland, eastern Kentucky, central Tennessee, western Virginia, northwestern Georgia, and northern Alabama. The Williston Basin stretches through North Dakota, the northwest part of South Dakota, and eastern Montana.

Price Prediction for KRP Stock by 2030

Based on current trends and analysis, KRP stock is predicted to trade between $14 and $18 by 2030.

1. Bullish Scenario: The stock could reach $18 if the company achieves operational efficiency and benefits from stable oil prices.
2. Bearish Scenario: The stock may stabilize around $14 if revenue challenges persist.
3. Consensus Target: Analysts suggest a likely price of $16, reflecting moderate growth expectations.

This prediction considers KRP's current financial performance, industry trends, and analyst projections.

KRP has a total of 29 employees.