Bruce Jefferson
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Are Investors Underappreciating Devon Energy?

rgus maintained its Buy rating on Devon Energy Corp and raised the price target by $10 to $51, implying a potential return of about 16 percent.

"We believe that Devon's focus on liquids production in unconventional North American plays is underappreciated by investors. In addition, the stock's valuation discount relative to peers appears unwarranted based on the company's low leverage, cash flow visibility, and access to liquidity," analyst Bill Selesky wrote in a note.

Selesky expects Devon's concentrated acreage positions in the Permian basin and the Eagle Ford shale to make it more profitable on a cost-per-barrel basis amid improving well productivity and lower operating costs.

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