UPDATE: Credit Suisse Initiates Devon Energy at Outperform on Outlook and Valuation

Credit Suisse initiated coverage on Devon Energy

with an Outperform rating and a $74 price target. Credit Suisse said, "We believe shares are poised to rerate on (1) structural logistical upgrades, which should normalize heavy oil realizations and boost returns from its world-class oil sands projects, (2) further evidence of DVN's capital efficient model, which should deliver strong liquids growth at lower capex and competitive cash flow growth, and (3) improving gas sentiment in 2013. DVN will likely temper its gas and NGL guidance for 2013 given lower liquids prices since its April analyst meeting. This would be an ideal entry point as the valuation largely embeds lower gas and NGL growth." Devon Energy closed at $60.63 on Thursday.