Analyst Neil Mehta upgraded the energy stock to buy from neutral, citing its attractive valuation and improving confidence in the capital expenditures and production outlook. "While we do not expect DVN to beat its guidance and consensus production expectations, we believe shares are trading at a discount to peers and potentially pricing in concerns around further execution missteps relative to other large-cap peers," he wrote in a Tuesday note to clients.
According to Mehta, the company's recent underperformance beginning with 2022 third-quarter results stemmed from higher capital expenditures stemming from a combination of increased material and service costs and lower production. DVN YTD mountain Devon Energy shares slump nearly 20% "However, following the relative underperformance vs.