Devon Energy's Capital Efficiency Predicted to Improve, Analysts Foresee Strong Growth

Truist Securities's Neal Dingmann raised their price target on Devon Energy (NYSE: DVN) by 4.5% from $66 to $69 on 2024/04/22. The analyst maintained their Strong Buy rating on the stock.

In a preview of Devon Energy's Q1 2024 earnings, which will be reported on 2024/05/01, Dingmann said there shouldn't be any "surprises" because the company's drilling and completion expenses in key operational regions remain "efficient." This suggests that the analyst is optimistic about the company's performance in the first quarter and expects it to meet or exceed expectations.

Following two consecutive years of Q/Q declining cumulative average output in Delaware and Bakken, the analyst predicted that Devon Energy's total capital efficiency may revert to levels seen in 2021 and 2022. This indicates that Dingmann believes the company has the potential to improve its capital efficiency in these regions, which could positively impact its overall financial performance.

Another analyst, Susquehanna's Biju Perincheril, also issued an update on DVN on 2024/04/22. Perincheril raised their price target by 25%, from $52 to $65, and maintained their Strong Buy rating on the stock. This suggests that Perincheril is also bullish on Devon Energy and expects the stock to outperform.

According to data from WallStreetZen, 83.3% of top-rated analysts currently rate DVN as a Strong Buy or Buy, while 16.7% see it as a Hold. No analysts recommend or strongly recommend selling the stock. This indicates that the majority of analysts have a positive outlook on Devon Energy and believe it is a good investment opportunity.

The consensus forecast among analysts is that DVN's upcoming year will deliver earnings per share (EPS) of $7.37. If the analysts are right, DVN's next yearly EPS will be up by 25.8% on a year-over-year basis. This suggests that analysts expect Devon Energy to experience strong earnings growth in the coming year.

It's worth noting that since DVN's last quarterly report on 2023/12/31, the stock price has increased by 15.1%. However, on a year-over-year basis, the stock is down 4.3%. During that period, DVN has underperformed the S&P 500, which is down 21.1%. These figures provide some context for the stock's recent performance compared to the broader market.

Devon Energy Corporation is a hydrocarbon exploration company with operations in the Barnett Shale STACK formation in Oklahoma, the Delaware Basin, the Eagle Ford Group, and the Rocky Mountains. The company also has oil sands operations in Alberta, Canada. Devon was founded in 1971 and is headquartered in Oklahoma City, OK.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.