Devon Energy (DVN) might have an upside of 75.1% in the next 12 months based on analysts’ mean target price. With the current downturn in oil prices and the risk of the WTI-WCS (Western Canada Select) spread, which we discussed in the previous part, such a huge upside isn’t likely. With the recovery in the spread, investors might expect a short-term upside momentum in the stock.
Lower target price
On November 8, RBC reduced the target price on Devon Energy from $58 to $56. On November 9, Jefferies reduced the target price by $4 to $48. On November 20, Morgan Stanley lowered the target price on Devon Energy from $44 to $39. On November 6, J.P. Morgan increased its target price on the stock to $51 from $50. On November 30, Devon Energy stock closed at $27.03. Four out of the top five institutional holders of Devon Energy have reduced their position in the stock based on their 13F filings.