Devon Energy (NYSE: DVN) continues to find favor among the analyst community. Although analysts at Truist recently lowered their target price on the stock to $66 from $69, the target still implies a near 24% upside potential over the next 12 months or so.

Truist's position is interesting and slightly different from what other analysts have been saying. Citi recently upgraded its price target to $55 based on an improvement in Devon's natural gas assets, and Wells Fargo raised its rating to overweight and its price target to $59 in anticipation of improvements in well efficiency due to Devon drilling in its core Delaware basin assets.

Truist's view is that the financial industry is still too negative on the oil exploration and production sector, suggesting that they (asset managers) are underweight in the sector. In simple terms, this means Truist feels asset managers, who often sector weight their holdings in line with S&P 500 sector weightings, are holding less than the S&P 500 weightings in exploration and production oil stocks.

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Source Fool.com