Goldman Sachs analyst Neil Mehta upgraded Devon Energy to Buy from Neutral with a price target of $58, down from $63. The shares underperformed peers since Q2 of 2022 results, which is a function of higher capex and lower production relative to consensus expectations, the analyst tells investors in a research note. However, the firm believes Devon’s valuation is “becoming more compelling” and sees potential for well costs to reduce as a function of lower raw material costs. It sees a “mean reversion” in the shares.
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