Devon Energy price target lowered to $51 from $55 at Morgan Stanley

Morgan Stanley analyst Devin McDermott lowered the firm’s price target on Devon Energy to $51 from $55 and keeps an Overweight rating on the shares. In Q3, the energy group has lagged the market by 10% as softening oil prices, slowing inflation, and potential interest rate cuts “all present headwinds for performance,” the analyst tells investors. In this backdrop, the firm remains selective and continues to prefer defensive sub-sector positioning among midstream and majors. Morgan Stanley favors gas over oil in exploration and production. It made price target and rating changes in the group after revisiting the setup across the North American energy sector.