US Stock Market Move | Devon Energy Corporation (DVN.US) rises by over 5%. JPMorgan says current stock price is attractive.

On Wednesday, Devon Energy Corporation (DVN.US) rose more than 5%, closing at $46.45. Morgan Stanley analyst Arun Jayaram believes that Devon Energy Corporation currently offers an attractive buying opportunity for several reasons: both absolute and relative valuations are attractive; there is significant potential for synergies to be unlocked; there may be future initiatives to optimize the asset portfolio and unlock more value; the stock valuation is disconnected from fundamentals, providing favorable conditions for a more aggressive stock buyback program. Arun Jayaram noted that since announcing the deal with Conterra earlier this year, Devon Energy Corporation's stock performance has lagged behind large exploration and production peers by about 9%. He believes that this underperformance may be attributed to various factors, including: some merger arbitrage pressure before the deal is completed; the company has not yet disclosed formal performance guidance post-merger; uncertainty in the market regarding the future asset portfolio; and recent high prices in the U.S. federal oil and gas leasing auctions causing a "price shock".