Analyst Kalei Akamine of Bank of America Securities maintained a Buy rating on Devon Energy, retaining the price target of $44.00.
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Kalei Akamine’s rating is based on Devon Energy’s strong financial performance and operational efficiency. The company reported an adjusted EBITDA that exceeded expectations, driven by increased gas production. Additionally, Devon Energy’s operating cash flow surpassed forecasts, and their capital expenditures were lower than anticipated due to cost efficiencies, resulting in a robust free cash flow that supported significant cash returns and strategic acquisitions.
Moreover, Devon Energy’s production levels have consistently beaten guidance, particularly in the Rockies, which has led to an upward revision in their full-year oil guidance. The company’s strategic initiatives, such as the Waterbridge IPO and the Cotton Draw Midstream deal, further enhance its financial position. Despite some conservative guidance for 2026, the potential for further improvements in production optimization and capital efficiency suggests that Devon Energy is well-positioned for future growth, justifying the Buy rating.
DVN’s price has also changed slightly for the past six months – from $30.620 to $32.340, which is a 5.62% increase.