Mizuho Securities Upgrades Devon Energy (DVN) to Buy

Mizuho Securities analyst Vincent Lovaglio upgraded Devon Energy (NYSE: DVN) from Neutral to Buy with a price target of $17.00.

The analyst commented, "Low leverage and a Delaware Basin pure-play proxy in a lower oil price environment. DVN is allocating basically the entirety of its remaining 2020 budget to the Delaware Basin, and we expect that to continue in 2021 (with some investment in PRB and DOW funding volumes from the STACK JV). That's a good thing, in our view. DVN is a stealth Delaware Basin pure-play at lower oil prices, with top-tier operations and costs in the play & low leverage, in our view. Cash flow at $40/bbl should cover sustaining requirements next year, leaving Barnett proceeds to go to the balance sheet to reduce leverage further."

For an analyst ratings summary and ratings history on Devon Energy click here. For more ratings news on Devon Energy click here.

Shares of Devon Energy closed at $12.95 yesterday.

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