Wells upgrades Devon to Overweight into better well performance

Wells Fargo upgraded Devon Energy to Overweight from Equal Weight with a price target of $59, up from $46. The analyst expects the company’s high-grading efforts in the Delaware Basin will begin to bear fruit in Q2, leading to a significant improvement in capital efficiency and a positive re-rating of the stock. Devon should “turn the corner” in terms of well performance in Q2, since most of its Q1 spuds are concentrated on higher-quality New Mexico acreage with higher exposure to virgin drilling and spacing units, the analyst tells investors in a research note.