2 Wall Street Analysts Thinks Devon Energy Stock Is Going to $60. Is It a Buy Around $52?
Piper Sandler followed Wells Fargo's lead recently by raising its price target on Devon Energy (NYSE: DVN) from $59 to $60 and maintaining an overweight rating on the stock. The $60 target implies a 14% upside to the stock price over the next 12 months or so.
Devon Energy investors are looking forward to substantive dividends and buybacks from the company this year, in addition to the potential for share price appreciation. As such, it's not hard to pencil in the potential for a 20% total return from the stock, provided you believe in the $60 price target.
To do so requires confidence that the current price of oil is sustainable at around $83 a barrel. While it's tough to predict energy prices, investors in oil stocks take heart from the relatively high prices so far in 2024 (during a weak period of global economic growth). Investors are also keeping an eye on coordinated production cuts by OPEC and OPEC+ countries, and the need to replenish the U.S. strategic petroleum reserves following a significant drawdown by the current administration.
Source Fool.com
