Goldman Sachs Remains Bullish on Devon Energy (DVN) Following Q3 2025 Results

Core Viewpoint - Devon Energy Corporation (NYSE:DVN) is gaining significant attention from hedge funds and is considered one of the best commodity stocks to buy currently [1] Group 1: Analyst Ratings and Price Targets - Goldman Sachs maintains a "Buy" rating on Devon Energy with a price target of $42 following Q3 2025 results [2] - RBC Capital also reiterated a "Sector Perform" rating with a $42 price target, citing the company's ongoing business optimization efforts and initial 2026 guidance [3] Group 2: Financial Performance - In Q3 2025, Devon Energy generated $1.7 billion in operating cash flow and $820 million in free cash flow, returning $401 million to shareholders through dividends and share repurchases [4] - The company reduced net debt by $485 million, achieving a total debt reduction of nearly $1 billion towards a $2.5 billion target, resulting in a net leverage of 0.9x [4] - Production during the quarter exceeded guidance, with operating costs decreasing by 5% since the beginning of the year [4] Group 3: Future Outlook - Devon Energy plans to invest $3.5-$3.7 billion in capital to maintain stable production levels and enhance free cash flow [5]