Cenovus Energy Receives a Hold from Canaccord Genuity

By Carrie Williams

The Materials sector company, Cenovus Energy (TSX: CVE), has received a rating update from a Wall Street analyst today. Analyst Dennis Fong from Canaccord Genuity remains neutral on the stock and has a C$15 price target.

Fong commented:

“We estimate the company will look to show a D/CF of ~9.2x on strip pricing in 2018 and ~4.1x in 2019.”

According to TipRanks.com, Fong is a 4-star analyst with an average return of 4.5% and a 40.7% success rate. Fong covers the Basic Materials sector, focusing on stocks such as Athabasca Oil Corporation, Whiting Petroleum Corp, and Freehold Royalties Ltd.

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

The company has a one year high of C$22.06 and a one year low of C$10.27. Currently, Cenovus Energy has an average volume of 5.04M.

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 Monday at $10.28, close to its 52-week low of $10.27.