UPDATE: Bank of America Upgrades Devon Energy to Buy on Relative Valuation Disconnect
Bank of America upgraded Devon Energy (NYSE: DVN) with a Buy rating and raised the price target from $75.00 to $90.00.
Bank of America noted, "Devon was one of the worst performing stocks of the large cap US oils in 2012. But when examining the make up of the portfolio, we believe the value disconnect between ‘like' companies has left the shares trading at levels where management has lost patience and will consider several possibilities to release value. In our view a potential MLP of its midstream business is back on the table while an outright separation of oil sands can't be ruled out. Add the first of its exploration plays to transition to development in the Miss Lime, and we believe the balance of risk that led us to upgrade DVN as a recovery play for 2013 are in place."
Devon Energy closed at $59.53 on Wednesday.
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