Devon Energy (DVN) Valuation Too High Says Morgan Stanley (MS)

The surging share price of Devon Energy (NYSE:DVN) has Morgan Stanley (NYSE:MS) getting nervous, as the downgraded the energy company, mostly on valuation concerns.

Morgan Stanley downgraded them from “Overweight” to “Equal-weight,” citing the fact that the oil exploration & production sector has outperformed the markets this year thus far.

Shares of Devon Energy have soared over 18 percent over last year at the same time, easily beating the 5 percent gain on the S&P Index.

Devon closed Friday at $93.01, gaining $0.25, or 0.27 percent.