Devon Energy (DVN) Target Increased to $50 by Roth Capital After Strong Results

Devon Energy Corporation (NYSE:DVN) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

Following Devon Energy Corporation’s (NYSE:DVN) Q4 2025 results, Nick Pope, an analyst at Roth Capital, raised his price target on the stock from $42 to $50 and reiterated a Buy rating on February 19. The analyst attributed the strong results to robust oil production, particularly by the Delaware Basin asset.

For Q4 reported on February 17, Devon Energy Corporation (NYSE:DVN) reported revenue of $4.12 billion, down 6.4% year over year but 14% ahead of the consensus of $3.61 billion. Adjusted EPS was $0.82, which was only slightly below the street expectation of $0.83. On production, the company averaged 390,000 barrels of oil per day in the fourth quarter, at the top end of its guidance. This accounted for 46% of total production, which stood at 851,000 barrels of oil equivalent per day (Boe/d). The company generated adjusted free cash flow of $702 million for Q4 (vs. $738 million in Q4/24) and $3.12 billion for the full year.

For Q1 2026, the impact of severe winter is expected to reduce production by 1%, or by 10,000 Boe/d. Capex is expected to be around $900 million. The company is also planning to increase its quarterly dividend rate by 31% to $0.315 per share following the merger with Coterra Energy. A new share repurchase authorization of over $5 billion is also being considered after the merger is completed.

Devon Energy Corporation (NYSE:DVN) is a leading U.S. oil and gas producer with a diversified multi-basin portfolio, led by its Delaware Basin assets.

While we acknowledge the potential of DVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.