Morgan Stanley has revised its price target for Devon Energy (DVN, Financial), lowering it from $47 to $42 while maintaining an Overweight rating on the company's shares. This adjustment comes in response to recent declines in oil prices, prompting the firm to update its forecasts for cash flow in 2025-26, now projecting figures below broader market expectations.
In their analysis, Morgan Stanley also highlighted potential risks for small and mid-cap producers, as well as those facing execution challenges. As a result, they have adjusted their assumed discount to net asset value for these companies. Given the current soft conditions in the oil market, the firm continues to hold an In-Line view of the exploration and production (E&P) sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for Devon Energy Corp (DVN, Financial) is $47.33 with a high estimate of $66.00 and a low estimate of $32.00. The average target implies an upside of 64.73% from the current price of $28.73. More detailed estimate data can be found on the Devon Energy Corp (DVN) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, Devon Energy Corp's (DVN, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Devon Energy Corp (DVN, Financial) in one year is $50.40, suggesting a upside of 75.43% from the current price of $28.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Devon Energy Corp (DVN) Summary page.
