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
See the latest analyst ratings
See more from Benzinga
Don’t miss real-time alerts on your stocks – join Benzinga Pro free! Try the tool that helps you invest smarter, faster and more efficiently.
© 2022 Benzinga.com. Benzinga does not provide investment advice. Copyright Registered.