Cenovus Energy Receives a Buy from Canaccord Genuity

By Jason Carr

In a new note to investors yesterday, an analyst has provided a rating update for the Materials sector company, Cenovus Energy (TSX: CVE). The company received a Buy rating from Canaccord Genuity’s analyst Dennis Fong, with a C$15.50 price target.

Fong said:

“We carried no incremental risked upside from drilling at Weyburn beyond the PDP value of production. Looking forward we expect Cenovus to complete the evaluation of further asset dispositions, which we continue believe will include a GORR which is paid to Cenovus and a portion of the Deep Basin assets. Incremental information on these asset dispositions are expected in late 2017.”

According to TipRanks.com, Fong is a 5-star analyst with an average return of 12.3% and a 65.7% success rate. Fong covers the Basic Materials sector, focusing on stocks such as Athabasca Oil Corporation, Whiting Petroleum Corp, and Freehold Royalties Ltd.

Currently, the analyst consensus on Cenovus Energy is Moderate Buy and the average price target is C$14.93, representing a 7.2% upside.

In a report issued on November 3, Desjardins also reiterated a Buy rating on the stock with a C$14 price target.

Cenovus Energy’s market cap is currently C$17.55B and has a P/E ratio of 5.3.

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 company’s shares closed on Monday at C$13.93.