Bank of America Retains Neutral Rating, $98 PT on Devon Energy

Devon Energy Corporation's

execution of the asset disposal program underway in the past years “has been flawless,” Bank of America reports. “However, the growth remains dominated by assets that still carry a significant weight of lower value liquids versus more oil weighted peers,” Devon writes. “There is no question Devon's balance sheet strength brings options – but beyond the base assets these are embryonic leaving the investment case anchored on share buy backs and the valuation largely dependent on the outlook for US natural gas. “With a peer group we view as significantly more oil weighted, with significant catalysts to drive share performance the lackluster outlook for US natural gas leaves our rating on Devon at neutral.” Devon Energy closed Tuesday at $77.98.