Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Devon Energy (NYSE:DVN) to $43.00 from $42.00 on Tuesday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the $20.87 billion energy company currently trades below its Fair Value, with 9 analysts recently revising their earnings estimates upward.
The firm adjusted its models for Devon Energy, incorporating updated production volumes, operating expenses, commodity price realizations, and cost-deflation assumptions for the upcoming quarters.
Wells Fargo lowered its third-quarter 2025 estimates due to lower oil, gas, and natural gas liquids (NGL) price realizations and higher operating expenses, though these factors were partially offset by higher production volumes.
For fiscal year 2025, the firm raised its oil volume estimate to 387,000 barrels per day, based on capital expenditures of $3.70 billion. At recent strip pricing, Wells Fargo forecasts free cash flow generation of $3.2 billion for fiscal year 2025.
The price target increase comes as Wells Fargo maintains its Overweight rating on Devon Energy, suggesting continued confidence in the company’s performance despite some near-term adjustments to quarterly estimates.
In other recent news, Devon Energy Corporation announced its financial results for the second quarter of 2025, which showed a mixed performance. The company reported earnings per share of $0.84, which was below the forecasted $0.88, resulting in a 4.55% negative surprise. However, Devon Energy’s revenue exceeded expectations by 5.94%, reaching $4.28 billion. These developments reflect the company’s ongoing financial dynamics and market position. Despite the earnings miss, the revenue beat demonstrates some positive aspects of Devon Energy’s recent financial activities. This mixed outcome may influence investor sentiment and future analyst evaluations. As these results unfold, they provide insight into Devon Energy’s current operational and financial status.
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