Devon Energy raised to Buy, Encana cut to Hold at Deutsche Bank

|About: Devon Energy Corporation (DVN)|By:, SA News Editor

Devon Energy (DVN +2.9%) is upgraded to Buy from Hold at Deutsche Bank, which views DVN as particularly well positioned relative to large-cap E&Ps to again grow production into a firming commodity price environment.

The firm believes DVN's 2014 asset transactions reposition the portfolio to highlight underlying growth potential, high-grade the portfolio towards fewer and key plays, and improve the cost of capital via the EnLink transaction; it also cites DVN's best-in-class hedge position.

On the other hand, Deutsche Bank lowers Encana (ECA +1.8%) to Hold from Buy, saying ECA is more dependent than peers on the broader commodity price outlook again returning to growth; the firm believes the move to fund the Athlon acquisition with cash on the balance sheet has left ECA with significantly reduced financial flexibility.