Raymond James Raises Devon Energy (DVN) PT to $46 From $45

Devon Energy Corporation (NYSE:DVN) is one of the S&P 500 stocks with a low PE ratio. Devon Energy, an independent Oklahoma-based energy firm, is involved in the exploration, development, and production of oil, natural gas, and natural gas liquids.

On September 5, Raymond James boosted the target price on DVN from $45 to $46, while assigning an Outperform rating to the stock.

Raymond James updated its estimates based on present commodity prices, following Devon’s outperformance of production and capex forecasts by the research firm itself and Wall Street by 2% and 7% respectively, along with a second consecutive $100 million slash in 2025 capex.

Raymond James observed that $75 million of DVN’s $100 million capex reduction stems from its current optimization program. The company further estimates around $1 billion in extra free cash flow over the next three years from reduced cash taxes and an additional $50 million per year from purchasing the remainder of the non-controlling interests in Cotton Draw Midstream.

For Q3 2025, the firm forecasts production of about 837,000 barrels of oil equivalent daily, including 387,000 barrels of oil and capex of $908 million, in line with guidance and analyst expectations. Full-year 2025 production of nearly 833,000 BOE/day and $3.7 billion in capital expenditure are also in accordance with consensus estimates.

Raymond James also expects Devon Energy Corporation (NYSE:DVN) to achieve free cash flow yields of about 9% in 2025 and 10% in 2026, similar to peers, with a 2026 EV/EBITDA projected at 4.2x versus roughly 4.5x for peers. The new price target is an indicator of greater capital efficiency by DVN.

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