Scotiabank maintains Devon Energy at sector outperform

Published 16/08/2024, 16:42
Scotiabank maintains Devon Energy at sector outperform

Scotiabank reaffirmed its Sector Outperform rating for Devon Energy (NYSE:DVN), with a steady price target of $60.00. The endorsement follows a series of meetings on Wednesday, August 14, with Devon Energy's top management, including CFO Jeff Ritenour and other key personnel.

During these discussions, the company's leadership emphasized a strong commitment to rigorous capital discipline.

Devon Energy's management team highlighted their strategy of returning 70% of free cash flow (FCF) to shareholders.

This return is to be achieved through a mix of fixed and variable dividends, complemented by stock buybacks. Notably, the company has placed a greater emphasis on repurchasing shares over variable dividends.

The meetings provided an in-depth view of Devon Energy's operational and financial strategies.

The company's approach has been met with approval from investors, who have expressed satisfaction with Devon Energy's recent performance and adherence to their financial framework.

According to Scotiabank's analysis, Devon Energy's commitment to capital discipline and its shareholder return program are key factors in maintaining the positive outlook on the stock.

The $60.00 price target remains unchanged, signaling confidence in the company's direction and execution.

Investors and market observers will continue to monitor Devon Energy's financial health and strategic initiatives, as these factors play a crucial role in shaping the company's market valuation and growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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