UPDATE: Credit Suisse Downgrades Devon Energy on Negative Outlook
In a report published Thursday, Credit Suisse analyst Arun Jayaram downgraded the rating on Devon Energy Corp. (NYSE: DVN) from Outperform to Neutral, and lowered the price target from $82.00 to $74.00.
In the report, Credit Suisse noted, “Our investment thesis on DVN hinged on two factors—(1) the ability of management to unlock significant value for its midstream assets; and (2) a relative re-rating opportunity once the market got confidence in DVN's ability to deliver sustained oil growth, toward the upper end of its 12-19% growth objective in '13. After reassessing (and lowering) our oil growth outlook for '13 and '14, we are less convinced the shares will re-rate on a relative basis. We believe a Neutral rating is now warranted, particularly as the strategic alternatives process (and highly successful midstream monetization) has run its course.”
Devon Energy Corp. closed on Wednesday at $61.40.
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