Devon Energy Corporation (DVN) To Restructure Through Divestiture

Howard Weil initiated coverage on Devon Energy Corporation (NYSE: DVN) with a Market Outperform rating and price target of $80. The firm believes Devon Energy’s intent to re-structure the company strategically through divesting its international and Gulf of Mexico properties in 2010 will be the primary driver of the stock over the next 12 months.

The firm said, “The move to shed some of the company’s more oily properties came as somewhat of a surprise to us, but we understand and support the impetus behind the strategic shift, which remains a core competency and efficiency driven measure more than a commodity preference event.”