Oil and natural gas producer Devon Energy Corporation (DVN) on Monday saw its price target and earnings estimates cut by analysts at two major Wall Street firms.
Guggenheim Partners maintained its “Buy” rating on DVN but lowered its price target to $90. That new target still suggests a massive 38% upside to the stock’s Friday closing price of $65.03. The firm also lowered its earnings estimates through 2013, citing expectations for lower energy prices.
Meanwhile, analysts at Jefferies & Co. maintained their own “Buy” rating on DVN but lowered its price target to $93. Additionally, the firm cut its earnings estimates for the company, citing lower-than-expected first quarter earnings performance.
Devon Energy shares fell $1.02, or -1.6%, in premarket trading Monday.
The Bottom Line
Shares of Devon Energy (DVN) have a 1.23% dividend yield, based on Friday’s closing stock price of $65.03. The stock has technical support in the $60-$62 price area. If the shares can firm up, we see overhead resistance around the $70-$72 price levels.
Devon Energy Corporation (DVN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.