Barclays raised Devon Energy’s price target to $62 from $54, implying over 37% upside as depleting inventories, shrinking OPEC spare capacity and muted U.S. production tighten the oil market. Devon acquired 16,300 undeveloped acres in the Delaware Basin for $2.6 billion, expanding its footprint to about 750,000 acres.
Barclays raised the price target on Devon Energy to $62 from $54 with an Overweight rating, while Morgan Stanley increased its target to $66 from $59 and maintained an Overweight stance, reflecting growing bullishness on the stock’s valuation.
Depleting global inventories, shrinking OPEC spare capacity and a muted U.S. production response to Middle East conflict are tightening the oil supply outlook, suggesting that exploration and production firms like Devon could see valuation re-ratings.
Devon Energy acquired 16,300 undeveloped acres in New Mexico’s Delaware Basin for $2.6 billion, boosting its total footprint to roughly 750,000 acres and adding about 400 net drilling locations normalized to two-mile laterals.
