Jefferies Cuts Price Targets on Devon Energy (DVN), PT Still Allows for 35% Upside
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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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Jefferies is reiterating its Buy rating on shares of Devon Energy (NYSE: DVN), but is lowering its price target from $103 to $100.
The firm believes shares are to cheap and notes the company's legacy producing assets could provide mid-single digit growth within cash flow for the next several years alone, with liquids growth in the double digits.
An analyst at Jefferies comments, "While catalysts are light, DVN has closed large valuation gaps in the past without the benefit of major catalysts. Devon is testing multiple new plays and a modest success there could change investor perception."
Due to having $6.8 billion in cash and short-term investments, Jefferies feels the announcement of a new buyback plan could be coming in the near-term. They state that a $2-$3 billion plan seems plausible.
The firm is tweaking its FY11 and FY12 EPS estimates from $5.95 and $7.40 to $6.10 and $6.95.
For more ratings news on Devon Energy click here and for the rating history of Devon Energy click here.
Shares of Devon Energy closed at $66.06 yesterday.
The firm believes shares are to cheap and notes the company's legacy producing assets could provide mid-single digit growth within cash flow for the next several years alone, with liquids growth in the double digits.
An analyst at Jefferies comments, "While catalysts are light, DVN has closed large valuation gaps in the past without the benefit of major catalysts. Devon is testing multiple new plays and a modest success there could change investor perception."
Due to having $6.8 billion in cash and short-term investments, Jefferies feels the announcement of a new buyback plan could be coming in the near-term. They state that a $2-$3 billion plan seems plausible.
The firm is tweaking its FY11 and FY12 EPS estimates from $5.95 and $7.40 to $6.10 and $6.95.
For more ratings news on Devon Energy click here and for the rating history of Devon Energy click here.
Shares of Devon Energy closed at $66.06 yesterday.
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