UPDATE: Guggenheim Securities Reiterates on Devon Energy Corp. Following Announcement of Agreement with Crosstex Energy
In a report published Tuesday, Guggenheim Securities analyst Rob Cordray reiterated a Buy rating on Devon Energy Corp. (NYSE: DVN), and raised the price target from $76.00 to $78.00.
In the report, Guggenheim Securities noted, “Devon Energy announced yesterday the signing of definitive agreements with Crosstex Energy, L.P. and Crosstex Energy, Inc. to combine substantially all of Devon's U.S. midstream assets with the entirety of Crosstex's assets to form a new midstream business. Although this structure represents a departure from the midstream MLP discussed in our previous note, we see it as a very positive development, as it accelerates the projected upside to the company's near-term and long-term NAV, in our view. Based on our updated NAV estimate from this transaction ($89.50 to $93.04/share), we are raising our PT to $78 from $76. We also believe that there could be an additional $3/share in incremental NAV as the deal is priced early next year.”
Devon Energy Corp. closed on Monday at $65.32.
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