RBC Capital Upgrades Ovintiv Inc. (OVV) to Outperform

RBC Capital analyst Greg Pardy upgraded Ovintiv Inc. (NYSE: OVV) from Sector Perform to Outperform with a price target of $55.00.

The analyst comments: "We have upgraded Ovintiv to Outperform with an unchanged one-year price target of $55 per share following an update with the company. In our eyes, the depth of Ovintiv’s position in the Montney affords energy investors an attractive/inexpensive avenue to gain sizeable exposure to an emerging oil/condensate resource play north of the border.

Ovintiv has delivered impressive operational/financial performance over a series of quarters – and fancy footwork
portfolio repositioning-wise – yet its relative valuation has yet to reflect that. In our minds, a better-defined shareholder returns profile (upon achievement of its $4.0 billion net debt target) and bolstered reserve disclosure (perhaps making use of Canadian standards) could assist in that regard. At the same time, potential non-core asset sales aimed at accelerating its net debt reduction may also be an avenue to pursue for several reasons."
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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 $36.81 yesterday.

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