Devon Energy (DVN) Target Lifted at FBR; Sentiment Shifting

FBR Capital analyst reiterated an Outperform rating on Devon Energy (NYSE: DVN) and boosted his price target from $82 to $90, saying sentiment is shifting on valuation, execution, and natural gas exposure.

Analyst Rehan Rashi comments, "Our recent conversation with investors is suggesting sentiment is shifting on investment merits and attractiveness of the platform. The strategic repositioning which has been ongoing for nearly three years is, in our opinion, cumulatively approaching a tipping point with regard to impact on the outlook for the overall enterprise and hence sustained rerating of cash flows. As a result, we are increasing our price target to $90/share from $82/share which is based on the stock trading at about 70% of our 3P NAV and, adjusted for EnLink midstream value, 4.5x 2014 and about 4.0x 2015 TEV multiple. The stock currently trades at 3.7x 2014 and 3.2x 2015 TEV multiple which compares to large-cap peer group multiples of 6.0x 2014 and 5.0x 2015."

For an analyst ratings summary and ratings history on Devon Energy click here. For more ratings news on Devon Energy click here.

Shares of Devon Energy closed at $70.50 yesterday.

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