Devon Energy price target lowered to $61 from $67 at Piper Sandler

Piper Sandler analyst Mark Lear lowered the firm’s price target on Devon Energy to $61 from $67 and keeps an Overweight rating on the shares. The firm was a bit cautious on E&P heading into Q3 results as war in Israel and a big pickup in deal activity drove a strong move in the group off the early October lows, and thinks the pullback in the group offers a better entry. Piper continues to see the group trading in a tight range around projected FY24 free cash flow yield, and believes differentiated asset level performance and resulting capital efficiency will be a key driver of relative performance going forward.