11:39 AM EST, 03/07/2024 (MT Newswires) -- Devon Energy's ( DVN ) operations seem to be "coming out of the trough" with increased core Permian asset focus and infrastructure improvements, RBC Capital Markets said in a note.

"We still think DVN is a battleground name for 2024, but if the company progresses toward the top of oil guidance heading into 2Q24, there could be a more positive skew," RBC analyst Scott Hanold said. "We think an accretive deal to enhance the inventory runway would be rewarded."

RBC projects $1.1 billion in buybacks this year by the company, according to the note.

RBC kept its sector perform rating on the stock with a price target of $55.

Price: 46.06, Change: +0.61, Percent Change: +1.35