Is Devon Energy Stock Going to $59? 1 Wall Street Analyst Thinks So
High-yield energy stock Devon Energy (NYSE: DVN) has a 15.5% upside over the next 12 months or so. At least it does if you believe analysts at Wells Fargo, who just raised the price target on Devon Energy stock to $59 from $46 previously and upgraded the stock to "overweight" from "equal weight."
One reason for the upgrade is enthusiasm for the company's capital allocation plan and focus on its core assets in the Delaware Basin (straddling west Texas and New Mexico). Devon Energy is allocating 60% of its $3.3 billion to $3.6 billion capital allocation in 2024 to the Delaware basin.
The analyst believes that Devon's drilling activity in these assets in early 2024 will improve well efficiency. It's a view shared by management, as its 2024 plan calls for its investment in drilling in the Delaware Basin to improve well productivity by up to 10%.
Source Fool.com
