02:30 PM EDT, 08/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $36 (up $2) is based on our EV/EBITDA and DCF model analyses. We apply a 4.4x multiple of EV to projected 2026 EBITDA, in line with DVN's historical forward average, and it yields a value of $35 per share. Our DCF model, using medium-term free cash flow growth of 4% per year, terminal value of 2.5%, discounted at a WACC of 7.3%, yields a value of $37 per share. We lift our 2025 EPS estimate by $0.09 to $3.97 but trim 2026's by $0.09 to $4.16. DVN's cost initiatives appear to be bearing fruit, having already achieved 40% of its $1.0 billion goal for incremental free cash flow. About 70% of DVN's free cash flow in Q2 was returned to shareholders in the form of dividends and buybacks. Management notes that the company has a break-even price of $45 on WTI, which includes its ability to sustain the dividend. Although the outlook for WTI is decidedly mediocre (we project a range of $65/b-$70/b over the next 18 months), we view the $45/b threshold as is unlikely to be breached.