UPDATE - UBS Upgraded Devon Energy (DVN) to Buy; Compelling Valuation
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Price: $49.10 -0.41%
Rating Summary:
42 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
42 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS upgraded Devon Energy (NYSE: DVN) from Neutral to Buy. PT lowered $5 to $85.
UBS analyst says, "DVN has underperformed large cap & gas-weighted peers by ~570 bps & 930 bps, respectively, over the past 3 months. With its growth outlook on an absolute and debt adjusted basis only slightly below peers in 2012, we believe its 22% discount to 1P NAV and 1 DACF turn discount to peers seems overdone and its shares offer compelling value."
Risks to our upgrade: 1) Disappointing New Ventures results with a lack of other meaningful near-term catalysts could cause stock to languish 2) inability to expand share buyback into ’12 as $6.5 bn in offshore cash needs to be repatriated tax-efficiently removes prop that supported stock in 2011 3) capital intensity of liquids drilling could result in higher than expected ’11-’12 capex.
To see more ratings changes on DVN, Click Here
UBS analyst says, "DVN has underperformed large cap & gas-weighted peers by ~570 bps & 930 bps, respectively, over the past 3 months. With its growth outlook on an absolute and debt adjusted basis only slightly below peers in 2012, we believe its 22% discount to 1P NAV and 1 DACF turn discount to peers seems overdone and its shares offer compelling value."
Risks to our upgrade: 1) Disappointing New Ventures results with a lack of other meaningful near-term catalysts could cause stock to languish 2) inability to expand share buyback into ’12 as $6.5 bn in offshore cash needs to be repatriated tax-efficiently removes prop that supported stock in 2011 3) capital intensity of liquids drilling could result in higher than expected ’11-’12 capex.
To see more ratings changes on DVN, Click Here
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