Devon Energy (DVN) Price Target Lowered at Raymond James. Here is Why

June 21, 2026 - 09:31

Raymond James has lowered its price target for Devon Energy (DVN), citing a shift in the company's capital allocation strategy. The firm reduced its target from $56 to $48 while maintaining a Market Perform rating on the stock. The adjustment comes after Devon announced plans to increase its capital spending and production guidance for 2025, a move that analysts believe could pressure free cash flow generation.

The company now expects to spend more on drilling and completion activities, particularly in the Delaware Basin. While this could boost output, it also means less cash will be available for shareholder returns. Raymond James noted that the higher spending plan reduces the buffer for dividends and buybacks, making the stock less attractive in a volatile oil price environment.

Devon Energy is a major US oil and gas producer with a diverse portfolio that includes operations in the Anadarko Basin, Eagle Ford, Marcellus Shale, Powder River Basin, and Williston Basin. The company is also anchored by a significant acreage position in the Delaware Basin, one of the most productive oil fields in the country. Despite the lowered target, Devon remains one of the larger independent producers in the sector, and its multi-basin strategy provides some operational flexibility.

The stock has faced headwinds recently as investors weigh the trade-off between growth and returns. With the new price target, Raymond James signals that the near-term outlook is less favorable, though the long-term value of Devon's asset base remains intact.