Devon Energy Could Eventually Be Worth $69/Share, Says Deutsche

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.