Roth/MKM reiterated a Buy rating and a $42 price target on Devon Energy (NYSE: DVN) after reviewing the company's 2026 production outlook and capital spending plans.

The firm said it conducted a detailed analysis of Devon's production model for 2026 to evaluate the asset-level implications of guidance issued in early November. Roth/MKM said its production forecast was slightly ahead of company guidance, while its capital expenditure assumptions were in line with management's outlook.

The analysis focused on capital efficiency in the Bakken, including a detailed review of base decline rates at the well level. Roth/MKM said it expected the Bakken to experience the largest production declines among Devon's four primary operating assets in 2026. Despite this, the firm said Devon's valuation remained attractive and reiterated its Buy rating and $42 price target.