Overview
Mizuho has identified five equity selections in the Americas energy sector that span upstream oil and gas producers, midstream infrastructure operators and a regulated utility. The bank says these companies are positioned to capture value from merger synergies, growth in data center-related energy needs and continued infrastructure projects. Mizuho's target prices on the slate imply potential upside ranging between 20% and 65% relative to prevailing share prices at the time of the report.
1. Devon Energy (NYSE: DVN)
Mizuho assigns Devon an Outperform rating with a $68 target. The bank underscores the strategic effects of Devon's May merger with Coterra, which created one of the largest shale operators in the Americas, producing in excess of 0.5 million barrels per day of oil and 4.5 billion cubic feet per day of dry gas. On 2027/28 EV/EBITDA metrics, Devon trades at roughly half the valuation of its peers and offers an estimated 3% to 5% higher free cash flow yield.
The bank notes specific commercial arrangements for Permian gas: around 100 million cubic feet per day will be sold on Japan Korea Marker (JKM)-linked pricing beginning in 2027, and a further 100 million cubic feet per day will be priced to European LNG benchmarks starting in 2028. Devon also holds a significant minority position in geothermal developer Fervo - a 15% stake the bank values at more than $1.5 billion. Investors are awaiting a pro forma budget due in mid-June as well as commentary on potential asset disposals; separate reports cited in the briefing indicate StonePeak is reported to have offered roughly $8 billion for Marcellus assets.
2. Permian Resources (NYSE: PR)
Permian Resources is rated Outperform with a $27 price objective. Mizuho views the company as a pure-play Permian operator with above-average resource depth, estimating more than 20 years of remaining inventory at breakeven levels below $55 per barrel. The firm expects the balance sheet to remain conservative, with net debt to EBITDA of about 0.5 times in 2026, and highlights a 3.4% dividend yield. Recent corporate changes include the conversion to a traditional C-Corp structure and removal of the private equity sponsor overhang, factors Mizuho sees as addressing earlier investor concerns.
3. Energy Transfer LP (NYSE: ET)
Mizuho gives Energy Transfer an Outperform rating and a $25 target. The bank views ET as well positioned to benefit from growing AI data center demand and from increased U.S. LNG requirements. An improved leverage outlook at the midstream operator could open the door to more aggressive capital return policies beyond the current roughly 3% distribution growth rate, according to the note.
Energy Transfer raised 2026 EBITDA guidance after a strong first-quarter performance. Those results helped prompt an upgrade to Buy by Jefferies and contributed to higher price targets from other firms, including Goldman Sachs. The company also disclosed plans to expand its Nederland NGL export terminal, which Mizuho flags as supportive of its growth thesis.
4. MasTec (NYSE: MTZ)
MasTec is assigned an Outperform rating with a $498 target. Mizuho highlights rapid revenue expansion in gas pipeline construction and in work related to AI data centers. In the first quarter of 2026, MasTec's pipeline revenue rose 91.5% year-over-year while reported EBITDA margins reached 21.2% in that segment. Management's targets for 2028 call for $22 billion of revenue and $15 of earnings per share; those targets exclude any contributions from potential mergers and buybacks.
The company reported strong first-quarter 2026 results and disclosed a backlog that reached a record $20.3 billion. In reaction to these developments, several firms including KeyBanc, Stifel and Jefferies raised their price targets on MasTec.
5. Ameren Corporation (NYSE: AEE)
Mizuho rates Ameren Outperform with a $122 target. The utility has converted 2.8 gigawatts of construction agreements into signed contracts in Missouri, and management is expected to provide updated guidance following an integrated resource plan due in September. Despite exposure to data center-related demand growth, Ameren's shares trade at only about a 7% premium to peer utilities, a valuation point noted in the bank's assessment.
Implications
Mizuho's selections reflect several recurring themes across the energy complex: consolidation and integration effects among upstream producers, the role of midstream infrastructure in servicing expanding LNG and data center needs, and the intersection of utility contracting and large-scale construction projects. The bank's targets span a wide range of upside potential, and the chosen names combine exposure to commodity production, transport and processing, and regulated utility markets.