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Devon Energy Upgrade - June 1

Posted: Tue Jun 01, 2021 6:20 pm
by dan_s
DVN closed at $30.20 today

Devon Energy (DVN) shares jumped Tuesday after Raymond James analyst John Freeman upgraded the oil and gas producer to strong buy from outperform and raised his price target to $40 from $34.

The strong performance of Devon's Delaware wells offer opportunities for productivity gains, he said, according to The Fly. That would boost Devon's free-cash-flow-to-enterprise-value ratio, which could mean a higher dividend yield, Freeman said.

Devon shares recently traded at $30, up 13.0%. They have doubled over the past six months amid rising oil prices and optimism for an economic recovery.

Oil prices hit 2 1/2-year highs Tuesday after the OPEC+ alliance predicted rising prices, as demand is rising while supply is falling. And nuclear talks with Iran haven’t produced an accord yet. OPEC plans to raise production next month.