Devon Vitality’s Prospects Appear Vibrant On Robust Shareholder Return & Stability Sheet, Says Analyst

• Raymond James analyst John Freeman reiterated a Robust Purchase ranking on the shares of Devon Vitality Corp (NYSE: DVN) and raised the value goal from $83 to $87.

• The analyst mentioned Devon Vitality was the most important underperformer in his protection after Q3 earnings.

• The pullback creates alternative as the corporate nonetheless maintains a robust shareholder return, pristine stability sheet, and lengthy stock life.

• He famous that the precise Q3 outcomes beat throughout the board with a pleasant combo of upper manufacturing and decrease capex.

• Freeman mentioned the identical can’t go true for the This fall steering, which was disappointing relative to Road expectations.

• The analyst continues to imagine Devon will simply exceed the 50% payout ratio by leveraging buybacks to sweeten its strong return technique.

• After the 50% payout, Devon may have substantial money to flex into buybacks, with extra M&A unlikely within the near-term after the energetic 2022 marketing campaign on that entrance.

• Freeman thinks Delaware accounts for 60% of Devon’s capital funding and has seen manufacturing develop 11% year-to-date.

• The corporate has taken steps to enhance value realizations, which was evident in Q3, mentioned the analyst.

• Devon’s 20% curiosity in Pin Oak’s export terminal in Corpus offers them entry to 90 Mbbl/d of Brent linked pricing.

• Freeman talked about that Devon’s LNG export partnership with Delfin offers direct publicity to worldwide gasoline pricing.

• Worth Motion: DVN shares are buying and selling increased by 0.34% at $72.05 on the final test Monday.

Newest Rankings for DVN

View Extra Analyst Rankings for DVN

View the Newest Analyst Rankings

See extra from Benzinga

Do not miss real-time alerts in your shares – be part of Benzinga Professional free of charge! Strive the software that can allow you to make investments smarter, quicker, and higher.

© 2022 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.