Goldman Sachs analyst Neil Mehta reinstated coverage of Devon Energy with a Buy rating and $54 price target. The firm is positive on the company's focus on optimizing its Delaware Basin asset, the management's outlook to capture $1.0b in run rate merger synergies by 2027-end, its updated return of capital framework to return up to 70% of free cash flow to shareholders and the stock's compelling valuation, with shares trading at a 15% free cash flow yield relative to large cap peer average of 11%, the analyst tells investors in a research note.
