Raymond James added Devon Energy to its Analyst Current Favorites list for the energy and utilities sector. The firm highlighted strong near-term oil fundamentals and a notable valuation gap against industry peers. Analysts expect the DVN-CTRA merger to provide several avenues to narrow this valuation difference.
Devon Energy maintains a plan for over $5 billion in share buybacks. Strong free cash flow supports potential acquisitions in the Delaware Basin or balance sheet improvements. Raymond James anticipates the company will exceed its $1 billion merger synergy target.