Jefferies Sees Multiple Catalysts Driving Devon Energy (DVN) Higher after Coterra Deal
Quick Take
Jefferies identifies several catalysts for Devon Energy's growth following the Coterra acquisition.
Key Points
- Coterra deal enhances Devon's market position.
- Increased operational efficiencies expected post-acquisition.
- Analysts anticipate higher stock performance.
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~2 min readVardah Gill
2 min read
Devon Energy Corporation (NYSE:DVN) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.
On May 8, Jefferies upgraded Devon Energy Corporation (NYSE:DVN) to Buy from Hold. It raised its price target on the stock to $62 from $53. The firm said pullbacks in the front end of the oil curve were creating opportunities for investors. The analyst also noted that Devon has several catalysts that could support both absolute and relative outperformance after the close of the Coterra merger. The research note added that attracting long-only capital may require a sharper focus on durable core assets. Jefferies also said selling non-core assets, especially the Marcellus position, could help eliminate debt and improve returns.
On May 15, Evercore ISI analyst Chris Baker resumed coverage of Devon Energy with an In Line rating and a $54 price target. The analyst said the company “stands out” because it offers one of the highest free cash flow yields in the S&P 500 and presents “a compelling valuation narrative relative to large-cap E&P peers.” At the same time, the analyst noted that geopolitical risks could make the timing of new investments more challenging.
Devon Energy Corporation (NYSE:DVN) is a U.S.-based oil and gas producer with a diversified multi-basin portfolio led by its acreage position in the Delaware Basin. The company focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs).
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— Originally published at finance.yahoo.com
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