Shares of Devon Energy Corp., the largest U.S.-based independent oil and gas producer, rose Monday as an analyst boosted his price target and estimates on the company, and oil prices touched a high.
The stock gained $5.28, or 4.6 percent, to $120.16 Monday. So far this year, shares of Devon have jumped 31 percent.
Friedman, Billings, Ramsey & Co. analyst Rehan Rashid raised his price target to $140 from $125, implying he expects the stock to rise about 22 percent from Friday's $114.88 close. He kept an "Outperform" rating.
Early Monday prices for light, sweet crude breezed past the $143 per barrel mark on the New York Mercantile Exchange.
During its second quarter earnings release set for August 6, Oklahoma City-based Devon could announce a buyback or a boost in 2008 production, Rashid said.
"We recommend that investors buy Devon Energy going into earnings, given a large capital redeployment and the benefits from both underlying asset value growth and cash flow in the (second half of 2008 and 2009)," he wrote in a note to clients.
Rashid boosted his 2008 production growth forecast to 12 percent from 9 percent and his 2008 earnings estimate to $10.70 from $10.11 per share.
A Devon Energy spokeswoman declined to comment.
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