One Wall Street Analyst Sees 24% Upside to Devonshire Energy Inc Stock

Devon Energyfirms(Devon)Energy(math.) genus(NYSE: DVN)continues to be favored by analysts. KoonTruistanalysts recently lowered their price target on the stock from $69 to $66, but that target still implies upside potential close to 24% over the next 12 months or so.

A Different Perspective

Truist's position is interesting and slightly different from other analysts.Citibank The target price was recently increased to $55 due to improvements in Devon's natural gas assets;Wells Fargo BankRaised its rating to Hold and its price target to $59 on the expectation that Devon's drilling rates on its core assets in the Delaware Basin will improve.

Truist argues that the financial sector still has an overly negative view of the oil exploration and production industry, which suggests that they (Koon & Co.) are under-represented in the industry. Simply put, this means that Truist believes that the asset managers are often based on aStandard & Poor's 500Their holdings are weighted by the sectoral weights of the index, while their holdings in oil exploration and production are underweighted by the S&P 500.

This is sometimes taken as a bullish indicator, as it means that Asset Management is likely to allocate more capital to the sector, balancing its holdings with the sector weighting of the S&P 500. Truist argues that investors should be "overweight" the sector, so there is more potential upside.

Is Devon Energy Corporation a stock worth buying?

It's hard to argue with the fact that Devon Energy is one of those stocks that Troost likes to use as a theme. The price of oil is $86 a barrel; resonance and resonance-plus countries (including energy giants Saudi Arabia and Russia) continue to cut production, and the new U.S. administration will have to replenish the current administration's vastly reduced strategic petroleum reserves, regardless of who wins the election.

At the same time, Devon's high-quality asset portfolio, compelling shareholder reporting policy, and investment strategy make it an ideal stock to buy in a bull market for oil.

Should you invest $1,000 in Devon Energy now?

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo & Co. is an advertising name partner of The Ascent, a Motley Fool company.Lee Samaha does not hold any of the above shares.The Motley Fool holds a recommendation for Truist Financial.The Motley Fool has a disclosure policy.

Devon Energy Stock Has 24% Upside According to One Wall Street Analyst was originally published by The Motley Fool.