Seeking Alpha

Devon target raised at Canaccord, as merger benefits midstream and E&P

  • Devon Energy's (DVN -0.4%) price target is raised to $86 from $77 at Canaccord, which believes DVN's merger of its midstream operation with Crosstex Energy generates many positives.
  • The merger increases the scale and scope of DVN's midstream business, fosters added growth opportunities and enhances the new entity's finances, which should keep DVN's midstream valuation robust, the firm says; it also highlights how undervalued its E&P business is, something the firm thinks can change for a variety of reasons.
Comments (2)
  • Devon's shale holdings/properties provides the stock generous upside potential, and remains a takeover target....


    28 Oct 2013, 06:10 PM Reply Like
  • DVN has not participated in the great value increase experienced by many independents, especially those with a focus on the Permian.
    Poor execution, not bad business or resource endowment seems to be the reason.
    However, execution can be substantially improved either via internal change or a change of management via a takeover. Either way DVN shareholders may be rewarded by a major increase in valuations over the next few months.
    29 Oct 2013, 12:33 PM Reply Like
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