Cenovus Energy Gets a Buy Rating from AltaCorp Captial

By Austin Angelo

Cenovus Energy (TSX: CVE), the Materials sector company was revisited today, and remains undervalued for at least one analyst on the street. AltaCorp Captial’s analyst Nick Lupick reiterates their Buy rating on the shares, with a C$21.50 price target.

According to TipRanks.com, Lupick is ranked #3368 out of 4573 analysts.

Cenovus Energy has an analyst consensus of Moderate Buy, with a price target consensus of C$20.10.

Based on Cenovus Energy’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$3.87 billion and quarterly net profit of C$211 million. In comparison, last year the company earned revenue of C$2.25 billion and had a GAAP net loss of C$118 million.

Cenovus Energy, Inc. engages in gas and oil provisions. Its activities include development, production, and marketing of crude oil, natural gas liquids, and natural gas in Canada. It operates through the following segments: Oil Sands, Conventional, Refining and Marketing; and Corporate and Eliminations. The Oil sands segment includes the development and production of bitumen and natural gas assets in northeast Alberta including Foster Creek, Christina Lake and Narrows Lake as well as projects in the early stages of development, such as Grand Rapids and Telephone Lake. The Conventional segment is the development and production of conventional crude oil, natural gas, and natural gas in Alberta and Saskatchewan which consists of heavy oil assets at Pelican Lake. The Refining and Marketing segment provides transportation, sale and refine services of crude oil into petroleum and chemical products. The Corporate and Eliminations segment refers primarily to unrealized gains and losses recorded on derivative financial instruments, gains and losses on divestiture of assets, as well as other wide costs for general and administrative, financing activities and research costs. The company was founded on November 30, 2009 and is headquartered in Calgary, Canada.

The company’s shares closed last Tuesday at $9.17.