Roth/MKM and UBS Positive on Devon Energy (DVN) After Bakken Capital Efficiency and Cost-Cutting Programs

Devon Energy Corporation (NYSE:DVN) ranks among the best hydrogen and fuel cell stocks to buy for 2026. On December 31, Roth/MKM reaffirmed its Buy rating on Devon Energy Corporation (NYSE:DVN), with a $42 price target. Analyst Nick Pope maintained a bullish outlook on the company following a thorough analysis of Devon’s 2026 output model. The firm’s production predictions for 2026 remain somewhat higher than Devon’s own guide, while its capital expenditure expectations are consistent with the company’s estimate.

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The study included an extensive analysis of capital efficiency in Devon’s Bakken operations, which employed precise data to evaluate an asset’s baseline decline.

Additionally, on December 12, UBS upgraded Devon Energy Corporation (NYSE:DVN) from Neutral to Buy, noting an improving oil outlook for the latter half of 2026 and an expected $1 billion debt reduction mid-year as major drivers for the company.

UBS expects Devon’s first-half 2026 developments to boost confidence in the company’s ability to implement its $1 billion cost-cutting target by the end of the year. The firm stated that this cost-cutting program, as well as ongoing capital allocation improvements, support UBS’s projection that 2027 capital expenditures will be roughly $200 million lower than Street estimates of $3.7 billion.

Devon Energy Corporation (NYSE:DVN) is a prominent player in the United States energy market, specializing in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company is looking into hydrogen as part of its energy transition, examining technologies like renewable natural gas and carbon capture, and envisions it as a future energy source.

While we acknowledge the potential of DVN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DVN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.