JPMorgan Reinstates Devon Energy (DVN) as Overweight on Valuation Appeal

Devon Energy Corporation (NYSE:DVN) is included among the 10 Best Dividend Stocks to Buy According to D. E. Shaw.

On June 8, JPMorgan reinstated coverage of Devon Energy Corporation (NYSE:DVN) with an Overweight rating. It also set a $62 price target on the stock after a period of restriction. The firm believes the stock’s current trading levels present an attractive entry point for investors. In a research note, the analyst said Devon offers a “compelling absolute and relative valuation proposition.” The firm also sees opportunities to capture additional synergies and believes a portfolio high-grading process could help unlock further value.

On June 1, Truist raised the firm’s price goal on Devon Energy to $66 from $63. It maintained a Buy rating on the shares. Analyst Gabe Daoud pointed to a Reuters report indicating that Devon had received an $8 billion offer for its Marcellus asset. Daoud added that expectations for a divestiture had increased following the merger’s completion, citing a strong ABS market and generally supportive conditions for asset sales. The analyst noted that investors had anticipated a transaction could materialize relatively quickly after the merger closed.

Devon Energy Corporation (NYSE:DVN) is a US-based oil and gas producer with a diversified multi-basin portfolio, led by its acreage position in the Delaware Basin. The company focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs).

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