Devon Energy upgraded to Buy from Hold at Benchmark

Benchmark upgraded Devon Energy (DVN) to Buy from Hold with a $44 price target Devon reset and outperformed guidance last year, but the stock underperformed other “oily large caps,” which the firm blames on both M&A noise and actual M&A. However, it believes M&A is now deprioritized as Bakken inventory is replenished and Permian targets are deemed dilutive and expects operational beats and share buybacks will better reflect in stock performance “without the M&A distraction.”