UPDATE: Morgan Stanley Initiates Devon Energy at Equal-weight on Gas Exposure

Morgan Stanley initiated coverage on Devon Energy

with an Equal-weight rating and a $55 price target. Morgan Stanley noted, "Operational setbacks have significantly hurt DVN's 2013 growth outlook, and we believe its large exposure to weaker pricing for gas, NGLs, and heavy oil will challenge the shares. At 122% of proved NAV, we believe these difficulties are largely discounted. DVN's headwinds are offset by the flexibility of its low leverage position and initial success in scalable emerging plays." Devon Energy closed at $53.49 on Monday.