Deutsche Bank changed its price target on Devon Energy Corp DVN Tuesday, stating the company holds one of the deepest, highest quality, and still underappreciated asset portfolio in their E&P coverage. The firm raised its price target from $41 to $45.
"While the market has wrestled with the overhang of debt and legacy cost structure, we believe that better than expected execution on asset sales, peer-leading leverage to the next $10/bbl move in crude (and gas/NGLs), and advantaged exposure to top "rate of change" plays in the Delaware Basin and STACK provide a visible, revisions-driven path towards our eventual bull-case of $69/share," said the Deutsche analysts.
The increasing crude confidence, asset momentum and a successful asset sale program as the major drivers for the company's long-term outperformance, according to the firm.
Shares traded recently at $35.74, down 4.5 percent on the day.
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