Analyst Lloyd Byrne of Jefferies maintained a Buy rating on Ovintiv, with a price target of $52.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Lloyd Byrne has given his Buy rating due to a combination of factors that highlight Ovintiv’s strategic moves and financial performance. A significant reason for the positive outlook is Ovintiv’s acquisition of NuVista Energy, which enhances its position in the Montney region. This acquisition is seen as a smart and strategic move, adding Tier 1 Montney acreage and increasing the company’s scale at a reasonable valuation.
Furthermore, the acquisition is expected to be leverage neutral and accretive to Ovintiv’s free cash flow per share and cash flow per share. The deal also completes Ovintiv’s portfolio transition, ensuring a substantial core liquids resource base in the Montney and Permian regions for at least 15 years. These strategic actions, combined with the company’s ability to reallocate capital effectively and secure growth options, underpin Byrne’s Buy rating.
According to TipRanks, Byrne is a 5-star analyst with an average return of 16.9% and a 54.20% success rate. Byrne covers the Energy sector, focusing on stocks such as Cenovus Energy, EQT, and Suncor Energy.