JPMorgan says it's time to buy the recent pullback in shares of Devon Energy following this morning's Q3 production preannouncement. The firm believes Devon's capital efficiency in the U.S. are trumping its challenges with Jackfish.

Piper Sandler analyst Mark Lear raised the firm's price target on Devon Energy to $60 from $59 and keeps an Overweight rating on the shares as part of a Q1 preview for the exploration and production group. Energy has been hot, almost too hot, as $90 crude potentially cools the pace of consolidation and investors looking for ways to play the data center and power demand theme turn to gas equities, the analyst tells investors in a research note. The firm adjusted oil and gas price assumptions, expecting crude pricing to remain strong through Q3 and gas pricing pressure to persist through the balance of fiscal 2024.