Devon Energy price target lowered to $65 from $72 at Piper Sandler

Piper Sandler analyst Mark Lear lowered the firm’s price target on Devon Energy to $65 from $72 and keeps an Overweight rating on the shares. The analyst says “big moves” in oil and natural gas prices have fueled a strong rally in exploration and production stocks to start the second half of 2023, offsetting the fact that service cost inflation benefits are anticipated to come more in fiscal 2024. While costs might be less of a tailwind than anticipated in a stronger commodity price environment, there has been less of a focus on improving asset performance stories versus financial and commodity leverage for the group, the analyst tells investors in a research note.