Siebert Williams Shank & Co analyst Gabriele Sorbara has maintained their bullish stance on DVN stock, giving a Buy rating yesterday.
Gabriele Sorbara has given his Buy rating due to a combination of factors including Devon Energy’s strong first-quarter performance and favorable production guidance. The company exceeded expectations in key financial metrics such as DCFPS, EBITDA, and FCF, driven by higher oil production volumes and lower capital expenditures. This performance was particularly noteworthy given the market’s focus on Devon’s ability to surpass its production guidance.
Furthermore, Devon Energy’s second-quarter oil production guidance exceeded both the analyst’s and consensus estimates, which is seen as a positive signal amid uncertainties following the dissolution of the BPX partnership. Additionally, the company’s 2025 outlook has improved with a reduction in capital expenditures and an increase in production guidance. These factors, combined with Devon’s attractive valuation metrics, such as a discount EV/EBITDA valuation and strong free cash flow yield, support the Buy rating despite mixed reactions relative to market expectations.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $42.00 price target.