Devon Energy, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Josh Silverstein from UBS upgraded the rating on the stock to a Buy and gave it a $46.00 price target.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Josh Silverstein has given his Buy rating due to a combination of factors that suggest a positive outlook for Devon Energy. A significant catalyst for this rating is the anticipated reduction of $1 billion in net debt by the third quarter of 2026, which is expected to enhance shareholder returns and improve the company’s financial flexibility. This debt reduction is complemented by a strategic cost reduction program aiming to decrease capital expenditures by $1 billion, potentially leading to a free cash flow yield increase.
Additionally, the improving oil price outlook, with projections of WTI crude rising from $60 per barrel in 2026 to $66 per barrel in 2027, supports an increase in EBITDA from $6.9 billion to $7.9 billion. Devon Energy’s strategic M&A activities are also expected to optimize its inventory quality and depth, further strengthening its operational performance. These factors, along with a valuation increase from a price target of $40 to $46, underpin Silverstein’s Buy recommendation for Devon Energy.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $48.00 price target.