Devon Energy (DVN) PT Raised to $48 at JPMorgan

JPMorgan analyst Arun Jayaram raised the price target on Devon Energy (NYSE: DVN) to $48.00 (from $45.00) while maintaining a Neutral rating.

The analyst comments " The 4Q24 print reflected a changing of the guard, with CEO Rick Muncrief set to retire at the end of February and COO Clay Gaspar set to become CEO on March 1. CEO-elect Gaspar noted his intention to maintain the strategy that was honed by CEO Muncrief, albeit with a greater focus capital efficiency and margin expansion, organic inventory expansion, and use of technology. The company raised its fixed dividend by 9% to $0.24 per share (2.6% yield) and repurchased $301mm of stock during 4Q24. In 2025, DVN expects to return up to 70% of its FCF and is prioritizing share buybacks. They messaged their intention to return $200 to $300mm per quarter through buybacks plus the fixed dividend of approximately $150mm per quarter. The company's cash return commentary suggests returning 53% of FCF back to investors assuming the mid-point of the buyback range or 60% assuming the top-end of the range. This suggests a greater focus on deleveraging the balance sheet with excess FCF."

You May Also Be Interested In

• Hyperion DeFi, Inc. (HYPD) PT Raised to $7.10 at Cantor Fitzgerald
• Jumia Technologies (JMIA) PT Lowered to $11 at Cantor Fitzgerald
• JPMorgan Downgrades Computershare Limited (CPU:AU) (CMSQY) to Neutral