Based on data compiled by Reuters, among the 33 analysts tracking Devon Energy (DVN), 55% recommended a “buy,” while 45% recommended a “hold.” None of the analysts recommended a “sell.” On May 30, Guggenheim reduced its target price on Devon Energy by $6 to $37. On May 16, UBS increased its target price on the stock by $1 to $37. On May 29, Devon Energy stock closed at $26.85.
Fewer “buy” recommendations
In the second quarter, based on analysts’ consensus estimates, Devon Energy’s EPS could rise 27.7% sequentially. Currently, Devon Energy is at a one-year forward PE ratio of 11.5x compared to the S&P 500 Index’s (SPY) average of 24.1x the holdings in the upstream subsector.
On May 29, Devon Energy announced that “it has entered into a definitive agreement to sell its Canadian business to Canadian Natural Resources Limited for CAD $3.8 billion, or USD $2.8 billion.” On February 19, Devon Energy reported its earnings for the fourth quarter of 2018 and upstream asset restructuring plan. The company’s asset restructuring plan would be a big boost for the stock. Devon Energy planned to separate its Canadian and Barnett Shale upstream assets by the end of this year.