Roger Read, an analyst from Wells Fargo, maintained the Buy rating on Devon Energy (DVN – Research Report). The associated price target was lowered to $44.00.
Roger Read has given his Buy rating due to a combination of factors including Devon Energy’s strategic approach to macroeconomic uncertainties and its focus on cost reduction and margin enhancement. The company’s production levels are expected to align with forecasts, with potential upside in financial results driven by stronger price realizations for oil, gas, and NGLs despite higher operating expenses.
Additionally, Devon Energy’s dissolution of the joint venture with BPX is anticipated to result in a temporary production decline, but the company retains valuable undeveloped acreage with competitive returns. The firm remains committed to shareholder returns, planning significant buybacks and maintaining a robust capital program without anticipated changes. These elements collectively support the Buy rating, reflecting confidence in Devon Energy’s ability to navigate current market conditions effectively.
In another report released on April 11, Scotiabank also maintained a Buy rating on the stock with a $35.00 price target.