Analyst Update: Devon Energy, Chesapeake Energy, Range Resources

Analysts revised their ratings and price targets on Devon Energy Corp (NYSE:DVN), Chesapeake Energy Corporation (NYSE:CHK), and Range Resources Corp. (NYSE:RRC)

Apr 19, 2016 at 3:10 PM

Analysts are weighing in on oil-and-gas stocks Devon Energy Corp (NYSE:DVN), Chesapeake Energy Corporation (NYSE:CHK), and Range Resources Corp. (NYSE:RRC). Here's a quick roundup of today's brokerage notes on DVN, CHK, and RRC.

DVN has tacked on 5% to trade at $33.60, after Morgan Stanley boosted its rating to "overweight," and Susquehanna raised its price target on the stock to $39 from $30. Today's move has Devon Energy Corp back in the black year-to-date, and going head-to-head with its declining 160-day moving average -- a level the shares haven't cleared on a closing basis since last June. Option traders appear to be betting on more gains. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 4.04 ranks higher than 92% of the past year's readings -- and represents a significant shift in sentiment over recent months.

A price-target hike to $5.50 from $4.50 at Susquehanna has helped boost CHK 3.2% to $6.15, bringing its year-to-date lead to nearly 37%. In fact, the stock is now on track to close above its 200-day moving average for the first time since September 2014. Still, the shares could stand to benefit from more bullish attention among the brokerage bunch, as just 5% rate Chesapeake Energy Corporation better than a "hold." While option traders have been fairly optimistic lately, puts are outstripping calls today by a 3-to-1 margin, with huge volume and buy-to-open action spotted on CHK's weekly 4/22 6-strike put.

RRC is up 3.2% at $38.26, after Susquehanna increased its price target to $43 from $40 -- following the lead of numerous analysts in recent weeks. Range Resources Corp. is up 55.5% in 2016, and recently broke through long-standing resistance at its 200-day moving average. But more than half of the brokerage firms following the equity rate it a "hold" or "strong sell." And RRC has a Schaeffer's put/call open interest ratio (SOIR) of 1.69 -- in the 86th percentile of its annual range -- indicating near-term open interest levels are more put-heavy than usual.

For other stocks in analysts' crosshairs, read Analyst Upgrades: International Business Machines Corp., Pacira Pharmaceuticals Inc, and Panera Bread Co and Analyst Downgrades: Netflix, Inc., Potash Corporation of Saskatchewan, and Illumina, Inc.

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