Devon (DVN) and Pioneer (PXD) price targets raised - Dec 8

[dan_s]

Piper Sandler Update. Mark is a very conservative energy sector analyst. His valuations have been some of the lowest shown by TipRanks. Mark definitely favors the large-caps.

Devon Energy (DVN) Mark A. Lear, CFA
Despite Strong Performance, Discount Persists, Raising PT to $21 < Compares to my valuation of $18.00.
With the recently announced WPX merger, DVN reaffirmed the commitment to improving
the balance sheet, increasing shareholder return via a fixed plus variable dividend model
and alluded to further efficiencies to be captured through portfolio optimization, which we
have expected would be a big added benefit of the deal.

Pioneer Natural Resources (PXD) Mark A. Lear, CFA
Quantifying the Variable Opportunity; Raising 21'-22' Estimates and PT to $132 < Compares to my valuation of $130.00.
On the back of the PE acquisition we project accelerating FCF and multiple compression
in 2022 as we foresee PXD being able to better optimize capital allocation of the combined
businesses, and argue that opportunity is not being properly reflected in the shares.