Matador Resources (MTDR) stock is likely to outperform its peers over the next 12 months and re-establish itself as a favorite small and mid-cap stock as investors focus on growth rate, value from gas transport deals, and midstream value recognition, RBC Capital Markets said in a Monday research report.

The brokerage lowered its Q4 earnings per share guidance to $0.95 and expects production of 209,000 barrels of oil equivalent per day, both exceeding consensus estimates, according to the note.

RBC said it expects robust production growth in mid-2026, citing "large batches development and longer laterals."

Matador's Hugh Brinson natural gas pipeline agreement could result in $400 million in benefits, although the pipeline start-up is not expected until Q4 2026, RBC added.

Matador secured Five Point Capital Partners as a long-term partner and could offload wholly-owned midstream assets via an IPO, which could help the entity pursue future growth, RBC wrote.

RBC reiterated its outperform rating on the stock and price target of $62 per share.

Price: 42.40, Change: +0.15, Percent Change: +0.36