Is Devon Energy Stock Going to $57? 1 Wall Street Analyst Thinks So.
An analyst at Mizuho recently welcomed Devon Energy's (NYSE: DVN) first-quarter earnings report by raising the stock's price target from $53 to $57 and maintaining a "buy" rating. Here's why the outlook appears positive for this oil and gas producer.
The bulk of Devon's production comes from the Delaware Basin in southeast New Mexico and west Texas. Management's decision to focus investment there appears to be paying off, as first-quarter production came in better than expected. The plan is to invest in improving well productivity in its highest-quality assets, and the good news is Devon achieved "better-than-planned well productivity, cycle time improvements that brought forward activity and the easing of infrastructure constraints in the Delaware Basin," according to the earnings release.
First-quarter production averaged 664 thousand barrels of oil equivalent per day (MBoe/d) compared to guidance for 630 MBoe/d to 650 MBoe/d.
Source Fool.com
