Business

Analyst says


  • Raymond James Analyst John Freeman reiterates Strong Buy rating on shares of Devon Energy Corporation (NYSE: DVN) and raised the price target from $83 to $87.

  • The analyst said Devon Energy was the worst performer in his coverage after Q3 earnings.

  • The pullback creates an opportunity as the company maintains a high return on equity, an original balance sheet, and a long inventory life.

  • He noted that the fact Outstanding Q3 results with an excellent combination of higher production and lower investment.

  • Freeman said the same couldn’t be true for Q4 guidance, which fell short of Street expectations.

  • The analyst goes on to suggest that Devon will easily surpass the 50% payout by leveraging buybacks to soften its solid return strategy.

  • After the 50% down payment, Devon will have a substantial amount of cash available for buyback flexibility, with additional M&A unlikely in the near term following an aggressive 2022 campaign on that front.

  • Freeman says Delaware accounts for 60 percent of Devon’s investment, and production is up 11 percent year-to-date.

  • The analyst said the company has taken steps to improve pricing, which was evident in the third quarter.

  • Devon’s 20% interest in Pin Oak’s export terminal in Corpus gives it access to Brent’s 90 Mbbl/d linked rate.

  • Freeman mentioned that Devon’s LNG export partnership with Delfin gives direct exposure to international gas prices.

  • Price action: DVN stock is trading 0.34% higher at $72.05 on Monday’s final check.

Latest ratings for DVN

Day

Sure

Work

Are from

Arrive

March 2022

benchmark

Low class

Buying

Organization

February 2022

Flute machine

maintain

Overweight

February 2022

Raymond James

maintain

Strong buy

See more analyst ratings for DVN

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