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What Analysts Recommend for Devon Energy ahead of 4Q15 Earnings

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Analyst recommendations for Devon

In the weeks leading up to Devon Energy’s (DVN) earnings release for the fourth quarter of 2015, Wall Street analysts provided target prices for the next 12 months.

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Consensus rating for Devon Energy

Approximately 69.4% of analysts rate Devon a “buy,” 27.8% rate it a “hold,” and 2.8% rate it a “sell.” The average broker target price of $42.44 for Devon implies a return of around ~52% in the next 12 months. Upstream peers such as Cabot Oil and Gas (COG) and Marathon Oil (MRO) have average broker target prices of $22.39 and $15.78, respectively. These figures imply returns of ~8% and ~62%, respectively, in the next 12 months.

High, low, and median analyst target prices for Devon are $70, $24, and $41, respectively. The median target price of $41 indicates positive returns of about ~47% compared with current levels over the next 12 months.

Devon Energy is a component of the Energy Select Sector SPDR ETF (XLE). The XLE ETF invests ~1.5% of its portfolio in the company.

Analysts’ target prices for DVN

Tudor Pickering gave Devon the most optimistic target price of $70, which implies returns of around 151% in the next 12 months. Société Générale and RBC Capital gave Devon less optimistic target prices of $50 each, implying returns of around ~79% in the next 12 months.

Evercore and Goldman Sachs (GS) gave lower price targets of $37 and $39, respectively, implying respective returns of ~32% and ~40% in the next 12 months.

One of the lowest targets was given by Jefferies and Barclays (BCS), which gave Devon target prices of $32 and $27, respectively. These figures imply returns of ~15% and -3%, respectively, over the next year. You can check out Will Devon Energy’s Unhedged Position in 2016 Be Its Downfall? for a detailed overview of the company.

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