Morgan Stanley raised the firm’s price target on Devon Energy to $54 from $52 and keeps an Overweight rating on the shares after the company announced the acquisition of a private Bakken E&P, Grayson Mill, for $5B. The transaction is 15% accretive to free cash flow per share at strip and extends inventory life, though execution will be key as Devon’s last Bakken deal underperformed expectations, the analyst tells investors.
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