Devon Energy upgrade

[dan_s]

Devon Energy (DVN) price target was raised this morning to $45 from $41 at Deutsche Bank.

The price change comes after the increasing attractiveness of the crude market, as well as Devon Energy's "better than expected" execution on asset sales, according to an analyst note.

The Oklahoma City-based oil and natural gas exploration and production company is also "the largest beneficiary of the next $10/bbl move in crude, increasing cash flow by 45%" and has "advantaged exposure to top 'rate of change' plays in the Delaware Basin and STACK," Deutsche wrote.

Additionally, the firm maintained its "buy" rating for Devon.

Deutsche believes the company can overcome "the overhang of debt and legacy cost structure" in the market and become an "eventual bull case of $69/share."

"After aggressively overhauling its portfolio over the past three years, we view DVN as holding one of the deepest, highest quality, and still underappreciated asset portfolios among our E&P coverage," Deutsche wrote in an analyst note.

My valuation of DVN is $56.00/share.

[dan_s]

Read this: http://blogs.barrons.com/stockstowatcht ... s&ru=yahoo