Read How Analysts Reacted To Devon Energy’s RimRock Transaction

  • Mizuho Securities analyst Vincent Lovaglio raised the price target for Devon Energy Corp (NYSE: DVN) to $94 (an upside of 28%) from $92, reflecting the $865 million Rim Rock acquisition.

  • The analyst states that the transaction adds 15kboed and 38k net acres to the company’s existing 48kboed and 85k net acre Bakken position at ~4x free cash multiple on the next twelve-month strip.

  • Lovaglio adds that the balance sheet strength has enabled DVN to differentiate itself on cash return.

  • This all-cash deal is another means of delivering value from a position of strength, enabling a 13% regular dividend increase while extending plateau production from a legacy position, mentions the analyst.

  • Yesterday, a few other analyst firms raised the price on DVN after the acquisition announcement.

  • Stifel analyst Derrick Whitfield raised the price target to $93 (an upside of 27%) from $88 while maintaining a Buy rating on the shares.

  • Raymond James analyst John Freeman raised the price target to $102 (an upside of 39%) from $90 while maintaining the Strong Buy rating on the shares.

  • Credit Suisse analyst William Janela raised the price target to $82 (an upside of 12%) from $75 while maintaining the Outperform rating on the shares.

  • Truist analyst Neal Dingmann raised the price target to $103 (an upside of 40%) from $100 while maintaining the Buy rating on the shares.

  • Piper Sandler analyst Mark Lear raised the price target to $94 (an upside of 28%) from $89 while maintaining the Overweight rating on the shares.

  • Price Action: DVN shares are trading lower by 5.72% at $73.40 on the last check Friday.

  • Photo Via Company

Latest Ratings for DVN

Date

Firm

Action

From

To

Mar 2022

Benchmark

Downgrades

Buy

Hold

Feb 2022

Piper Sandler

Maintains

Overweight

Feb 2022

Raymond James

Maintains

Strong Buy

View More Analyst Ratings for DVN

View the Latest Analyst Ratings

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