Devon Energy’s Estimates Boosted at Morgan Stanley (DVN)

By Staff,

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Natural gas and oil producer Devon Energy Corporation ( DVN ) on Thursday saw its earnings estimates raised by analysts at Morgan Stanley.

The firm said it raised its estimates for DVN through 2012, noting the company will likely use funds generated from recent asset sales for share buybacks and investments in oil projects.

Morgan Stanley currently rates Devon as "Overweight" with a $74 price target, which represents an expected 18% upside to the stock's Wednesday closing price of $62.56.

Devon Energy shares fell 50 cents, or -0.8%, in premarket trading Thursday.

The Bottom Line
We removed shares of DVN from our recommended list July 31,2008, when shares were trading at $94.89. The company has a dividend yield of 1.02%, based on last night's closing stock price of $62.56. The stock has technical support in the $57-$60 price area. If the shares can firm up, we see overhead resistance around the $66 price level. We would remain on the sidelines for now.

Devon Energy Corporation ( DVN ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: DVN

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