UPDATE: Deutsche Bank Upgrades EnCana on Work in Progress

In a report published Wednesday, Deutsche Bank analyst Stephen Richardson upgraded the rating on EnCana (NYSE: ECA) from Sell to Hold, and raised the price target from $17.00 to $22.00.

In the report, Deutsche Bank noted, “ECA's strategy update came earlier than expected, and the key positive in our mind was a re-balancing of cash flow commitments (dividend cut) and a clear message surrounding go forward capex. Capital will be focused on 2 Canadian plays (which benefit from ~$0.5 Bn of JV carries in 2014e) which are best in class in North America, the challenge is in the US where capital will be focused on 3 plays in an earlier stage of development and where growth and returns are more opaque. While there is more wood to chop in the US (3 plays account for <10% of production), the strategy has addressed the bear case. The backdrop is deteriorating NG balances. Moving to Hold.”

EnCana closed on Tuesday at $19.21.