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Evaluating Devon Energy (DVN) Valuation As Analyst Optimism Meets Upcoming Goldman Sachs Conference Update

Simply Wall St · 6d ago

Market interest in Devon Energy (DVN) has picked up as investors weigh recent analyst commentary alongside President and CEO Clay Gaspar’s scheduled appearance at the Goldman Sachs Energy, Cleantech & Utilities Conference on January 6, 2026.

See our latest analysis for Devon Energy.

Devon’s recent share price moves have been relatively soft, with a 30 day share price return of a 4.22% decline and a year to date share price return of a 5.23% decline. Its 1 year total shareholder return of 6.34% contrasts with a 3 year total shareholder return of a 35.79% decline and a 5 year total shareholder return of 135.95%, which points to stronger longer term momentum. This is setting the stage for investors to listen closely to comments from Clay Gaspar on capital spending, output discipline, and shareholder returns at the upcoming Goldman Sachs conference, following a period of generally positive analyst sentiment and ongoing focus on free cash flow and efficiency.

If you are looking beyond Devon for more energy names, this could be a good moment to scan aerospace and defense stocks as another area tied to global commodity and security trends.

With the shares recently weaker, an average analyst price target above the current US$35.89 level, and Devon trading at what some models flag as a discount to intrinsic value, you have to ask: is this an opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 20% Undervalued

With Devon Energy last closing at US$35.89 and the most followed narrative pointing to fair value near US$44.86, the gap between price and narrative fair value stands out and puts extra focus on the earnings and margin assumptions behind that view.

The analysts have a consensus price target of $45.483 for Devon Energy based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $70.0, and the most bearish reporting a price target of just $33.0.

Read the complete narrative.

Want to see what is driving this valuation gap? Revenue growth, margin shifts and a future earnings multiple all play key roles. Curious which assumptions really move the number?

Result: Fair Value of $44.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on U.S. shale remaining cost effective, as well as on Devon managing regulatory and environmental pressures that could raise costs or constrain future activity.

Find out about the key risks to this Devon Energy narrative.

Build Your Own Devon Energy Narrative

If you look at the numbers and come to a different view, or simply prefer to test your own assumptions, you can build a complete Devon story in just a few minutes, starting with Do it your way.

A great starting point for your Devon Energy research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Ready For More Investment Ideas?

If Devon has sharpened your thinking, do not stop here. Put a few more ideas on your radar so you are not relying on a single story.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.