MRO - Benchmark Research downgrades DVN EOG and MRO on valuation

Benchmark Research downgraded Devon (NYSE:DVN), EOG (NYSE:EOG) and Marathon (NYSE:MRO) to hold ahead of the market open Wednesday, indicating valuations reflect $85-$90 oil (NYSEARCA:USO). While analyst Subash Chandra doesn't see a path towards lower oil prices, he's focused on SMID cap stocks with more compelling valuations.  Benchmark also flagged risk from political cross currents resulting from shale's new business model. Companies have committed to returning cash to shareholders rather than spending it on production growth. As oil prices rally, consumers and Washington have taken notice. A shift back to growth, in response to political pressure, would likely spell disaster for the equities and Chandra thinks a more compelling valuation is required given the uncertainty.

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Benchmark Research downgrades DVN, EOG and MRO on valuation