Kalei Akamine, an analyst from Bank of America Securities, maintained the Buy rating on Devon Energy (DVN – Research Report). The associated price target remains the same with $52.00.
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Kalei Akamine has given his Buy rating due to a combination of factors that reflect Devon Energy’s strong operational performance and strategic shifts. The company’s enhanced production guidance for 2025, stemming from improved operations in key areas like the Delaware, Bakken, and Eagle Ford regions, suggests a robust outlook. The dissolution of the BPX Partnership, which increases Devon’s working interest, further supports the production growth, showcasing the company’s ability to optimize its asset base.
Kalei Akamine also highlights Devon Energy’s strategic transition from acquisition to exploitation, aiming to maximize portfolio returns. With a notable free cash flow yield of 12%, Devon is positioned to move towards the peer average, contingent on continued execution improvements. The recent operational successes, including record oil production and cost efficiencies, bolster the confidence in this trajectory, cementing Devon as a top pick in the oil sector.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $54.00 price target.