Devon (DVN) price targets raised - Oct 18

[dan_s]

Devon Energy Is Going Higher: Here's My Price Target < By By BRUCE KAMICH Oct 18, 2021 | 09:18 AM EDT

"Bottom-line strategy: It wasn't long ago that investors did not want to have energy names in their portfolio but the charts have changed. Traders could go long DVN in the $39 area risking to $34. The $70 area is our price objective."

Read Bruce's technical analysis:
https://realmoney.thestreet.com/investi ... _ven=YAHOO

MY TAKE: My current valuation of DVN is $50, but this is a large-cap with lots of running room and a good production mix. If Devon's 2022 guidance confirms my forecast assumptions, a 12-month price target of 8X operating cash flow is reasonable. Devon is on-track to generate $6.80 operating CFPS in 2021 and close to $9.50 operating CFPS in 2022, based on my forecast.
On 9-21-2021 TipRank's 2022 operating cash flow per share forecast was $8.11. Today their forecast is $8.66 operating CFPS for 2022.

All of my stock valuations for the Sweet 16 and our Small-Cap Growth Portfolio companies are based on a reasonable multiple of operating cash flow per share. Those with strong balance sheets, generating free cash flow from operations today and lots of running room deserve the higher multiples. Size does matter in this business, so the large-caps like CTRA, CLR, DVN, EOG, FANG, PXD deserve to trade at higher multiples.