Analyst Gabriel Daoud from TD Cowen maintained a Buy rating on Ovintiv (OVV – Research Report) and decreased the price target to $56.00 from $57.00.
Gabriel Daoud’s rating is based on several key factors that highlight Ovintiv’s potential for growth and stability. Despite recent stock underperformance, Daoud views this as a buying opportunity due to Ovintiv’s strong first-quarter results and a robust fiscal year 2025 program that remains unaffected by current macroeconomic challenges. The company’s continued execution, particularly in the Permian Basin, suggests potential upside to 2025 projections, with production levels remaining elevated compared to stated run-rates.
Additionally, Daoud notes that Ovintiv is well-positioned to thrive in a maintenance mode, with no need for significant capital expenditure cuts unless the macroeconomic environment further deteriorates. The company’s production forecasts and free cash flow yield are attractive, supported by strong operational performance and conservative estimates. Furthermore, Ovintiv’s strategic pre-purchase of necessary materials mitigates potential tariff impacts, and the anticipated resumption of the buyback program adds to the positive outlook. These factors collectively support Daoud’s Buy rating for Ovintiv’s stock.
According to TipRanks, Daoud is an analyst with an average return of -18.1% and a 28.76% success rate. Daoud covers the Energy sector, focusing on stocks such as Matador Resources, SM Energy, and Gulfport Energy.
In another report released today, Barclays also maintained a Buy rating on the stock with a $53.00 price target.