Benchmark Co. analyst Subash Chandra has maintained their bullish stance on DVN stock, giving a Buy rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Subash Chandra has given his Buy rating due to a combination of factors that highlight Devon Energy’s strategic improvements and financial outlook. The company has raised its production volumes by 2% while reducing capital expenditures by 5%, which indicates enhanced operational efficiency. The separation from BPX in the Eagle Ford region is expected to further improve capital efficiency.
Moreover, Devon Energy’s shift in policy, evidenced by a 9% increase in the base dividend and a focus on share buybacks, supports the notion of a positive financial trajectory. The company plans to return a significant portion of free cash flow to shareholders, with 70% allocated to dividends and buybacks, and the remaining 30% enhancing the balance sheet. Additionally, improvements in regional gas prices are likely to benefit Devon Energy, given their significant exposure to gas and natural gas liquids.
Chandra covers the Energy sector, focusing on stocks such as Devon Energy, Antero Resources, and Kosmos Energy. According to TipRanks, Chandra has an average return of 7.8% and a 42.39% success rate on recommended stocks.
In another report released today, Susquehanna also maintained a Buy rating on the stock with a $52.00 price target.