Devon Energy Corp DVN:NYSE

Last Price$72.58NYSE Previous Close - Last Trade as of 7:00PM ET 5/17/22

Today's Change+1.59(2.24%)
Bid (Size)$72.31 (1)
Ask (Size)$73.14 (7)
Day Low / High$71.52 - 72.83
Volume10.8 M

Devon Energy Downgraded to Neutral From Buy by Goldman Sachs as Firm Sees Limited Upside vs. Peers; Price Target Raised to $52 From $46

10:12AM ET 1/21/2022 MT Newswires
Devon Energy (DVN) received an investment rating downgrade to neutral from buy late Thursday from Goldman Sachs, which said it now sees "limited upside to shares relative to peers" following outperformance versus other names in the sector in 2021.

The downgrade came even as Goldman Sachs raised its price target on Devon Energy's stock to $52 per share from $46. This brings the target above the stock's Thursday closing price of $48.63.

The downgrade "is in part a reflection of what we believe to be a fair market valuation for DVN's strong returns, [free cash flow] and balance sheet relative to less-appreciated opportunities elsewhere in our coverage," Goldman Sachs energy analysts including Neil Mehta and Umang Choudhary said in a late-Thursday note to clients.

They noted Devon's shares have soared 291% since the firm added the stock to its buy list in November 2020. In comparison, the Standard & Poor's 500 index has risen 25% and the Energy Select Sector SPDR Fund (XLE) has risen 78% over the same time period.

The analysts said they still view Devon "as well positioned to return cash to shareholders." However, they added, "We no longer expect unique levels of capital returns for DVN."

Devon Energy has an average investment rating of outperform among analysts polled by Capital IQ, with price targets ranging from $45 to $65.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here:

Price: 46.71, Change: -1.92, Percent Change: -3.95