Citi's Oil Vision Highlights Value In Devon Shale Portfolio

In a report published Thursday, Citi analysts maintained their Buy rating on Devon Energy Corp (NYSE: DVN). The price target is set to $78. The analysts say that the global oil supply curve has begun to flatten for the first time in 10 years."This is a function of the continued expansion and cost-improvement in US shale plays, as well as signs that expanding capacity in oil field services is generating lower prices throughout the supply-chain," the analysts explained.US shale plays are expected to continue to do well, with the Mid-Continent, Permian and Eagle Ford shales likely to become large assets in the 2nd quartile of the supply curve. Liquid-rich North American shale plays already account for a large part of the 2nd/3rd quartile.According to the analysts, Devon's stock still holds value for the investor. "While many of the high-quality shale plays are already well valued by the market, we believe investors can still get good value exposure in Devon…," Imperial Capital added.