UPDATE: J.P. Morgan Raising Price Target on Devon Energy
J.P. Morgan is out with a research report on Devon Energy (NYSE: DVN) and it is raising its price target to $117 from $114.50, and is keeping its Overweight rating on shares.
In a note to clients, J.P. Morgan writes, "We updated our model for 3Q11 earnings, the latest operations update, guidance, and the 10-Q. The stock is our only large-cap E&P that trades right around its proved reserves NAV and we think it is a relatively safe name in a challenged market. We reiterate our Overweight rating."
"Recurring EPS/CFPS were $1.54/$4.49 versus consensus of $1.45/$3.39 and our estimate of $1.57/$3.63. Although 3Q production of 661 Mboepd was in line with our estimate and guidance (655-665 Mboepd), the overall average price realization was 3.1% lower than our model. Unit operating costs of $3.42/Mcfe were slightly lower than our estimate of $3.44/Mcfe. CFPS beat primarily on cash taxes."
Shares of DVN are off $2.65 to $66.72.
