Morgan Stanley Assumes Ovintiv Inc. (OVV) at Equalweight

Morgan Stanley analyst Devin McDermott assumes coverage on Ovintiv Inc. (NYSE: OVV) with a Equalweight rating.

The analyst comments "OVV has risen ~56% YTD, outperforming oil E&P peers by ~8% on the back of strategic portfolio transformation (NuVista acquisition & Anadarko sale), solid execution, and enhanced shareholder return framework. • The company trades at a 2026 EV/EBITDA of 4x and FCF yield of 13%, near the oil E&P median of 12% and 4x. • Pro forma for the Anadarko divestiture, we estimate OVV’s 2026E net debt/ EBITDAX would fall from above-average to 0.4x, in line with peers. • Price target is a 50/50 blend of NAV ($67/sh) and EV/EBITDAX based valuation ($69/sh). Our EV/EBITDA target multiple is 4.5x (NAV implied multiple of 4.6x)."

For an analyst ratings summary and ratings history on Ovintiv Inc. click here. For more ratings news on Ovintiv Inc. click here.

Shares of Ovintiv Inc. closed at $61.26 yesterday.

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