Morgan Stanley Reiterates Buy Rating on Devon Energy
Morgan Stanley maintains a positive outlook on Devon Energy with a $63 price target, a 52.47% upside from the current price.
Key Points
- Morgan Stanley reiterated its buy rating on Devon Energy, setting a price target of $63 on June 29, 2026.
- Morgan Stanley's $63 price target implies 52.47% upside from Devon Energy Corporation's ($DVN) current $41.32 share price.
- Devon Energy shares traded at $42.21 on Monday, with a market cap of $48.7 billion and a P/E ratio of 11.8.
- Insider transactions included sales by senior executives, while major institutional investors like BlackRock reduced their positions.
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Morgan Stanley reiterated its buy rating on Devon Energy Corporation (NYSE:DVN) on June 29, 2026, maintaining a price target of $63. Analyst Devin McDermott expressed continued confidence in the energy company's prospects.
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Devon Energy Corporation Stock Down 12.7%
Shares of NYSE:DVN traded near $42.21 on Monday. Devon Energy, with a market cap of approximately $48.7 billion, has a P/E ratio of 11.8 and a forward P/E of 7.7. The stock's 52-week range spans from $31.45 to $52.71, and its 50-day moving average is $46.23. Devon Energy also maintains a current ratio of 1.006 and a debt-to-equity ratio of 56.4.
$DVN price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Devon Energy reported revenues of $16.0 billion, with a slight decline in revenue growth. The company achieved a net margin of 14.2% and a return on equity of 15.2%. The next earnings report is expected on August 4, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
6 analysts raised price targets.
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EPS & revenue
EPS missed estimates by 2.9%. Revenue missed estimates by 4.3%.
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Profit surprise
EBITDA missed by 38 percent. Operating income missed by 70 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
6 target raises.
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Earnings quality
Gross margin down 14.6 points. Operating margin down 15.4 points. Positive free cash flow.
Earnings Call Summary
Devon beat on oil production at 387 thousand barrels per day and generated 816 million dollars in free cash flow despite spending 6 percent less than planned. The company achieved its 1 billion dollar business optimization target ahead of schedule through drilling efficiencies and AI tools like autonomous artificial lift optimization on 850 wells. The Cotera merger closes tomorrow, and management identified 156 distinct value capture opportunities with synergies considered a floor, not a ceiling.
Guidance No specific forward guidance given. Management stated they will provide combined full-year guidance in mid-June once the Cotera merger closes tomorrow and the board aligns on the plan. They expect second quarter production to step up and noted the commodity backdrop is stronger than expected.
Neutral report. Results and guidance were close to expectations, with limited evidence of a reset either way.
Dividend
Devon Energy pays an annual dividend of $1.04, yielding 2.46%, with a payout ratio of 26.7%.
Insider Buying and Selling at Devon Energy Corporation
Several insider transactions were noted, including sales by Alexander Andrea, SVP & Chief Admin Officer, who sold 18,000 shares at $46.74 on June 10, 2026. Other executives, including Jeffrey Ritenour, EVP & Chief Corp Dev Officer, also sold shares in May.
Analysts Set New Price Targets
On June 29, 2026, Morgan Stanley maintained its buy rating on Devon Energy with a $63 price target. Other firms, like Raymond James and UBS, also maintained buy ratings with targets of $66 and $58, respectively. The consensus among 26 analysts remains a strong buy, with an average target price of $60.88.
About Devon Energy
Devon Energy Corporation is an independent energy company focused on the exploration and production of oil, natural gas, and natural gas liquids in the United States. Headquartered in Houston, Texas, the company operates in several key basins, including the Delaware Basin and Eagle Ford. Led by CEO Clay M. Gaspar, Devon Energy employs about 2,200 people.
Bottom Line
Morgan Stanley's reaffirmation of its buy rating on Devon Energy reflects confidence in the company's future performance. Devon Energy's stock, trading at $42.21, shows strong fundamentals with a competitive P/E ratio and a robust analyst consensus. As always, remember that analyst ratings are one of many factors to consider when evaluating a stock.
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