Zacks Investment Research upgraded shares of Devon Energy Corporation (DVN) from UNDERPERFORM to NEUTRAL on January 10, 2013, with a target price of $56.00.
We have upgraded our recommendation on Devon Energy Corporation to Neutral from Underperform due to its strong cash position, a deep inventory of oil and liquids-rich growth opportunities, and implementation of cost-curtailment measures. In addition, we have considered the company's operational-consolidation processes and joint-venture with Sumitomo Corporation as a positive catalyst. However, we are primarily skeptical about volatility in commodity prices, which might partially mitigate the existing positives. In third-quarter 2012, Devon Energy reported mixed results. Its quarterly earnings per share beat the Zacks Consensus Estimate, while revenue missed the projection. Quarterly earnings surpassed estimate primarily due to lower marketing and midstream operating expenses, and a decline in tax charges.
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