Devon Energy price target lowered to $38 from $40 at RBC Capital

RBC Capital lowered the firm’s price target on Devon Energy (DVN) to $38 from $40 and keeps a Sector Perform rating on the shares ahead of its Q2 results. The firm expects production above midpoint guidance but also notes that the company’s free cash flow is impacted by tax impacts on the midstream sale, the analyst tells investors in a research note. RBC adds that the Permian well productivity is consistent with expected outcomes for the planned zone targets.