Ovintiv downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Philip Jungwirth downgraded Ovintiv to Market Perform from Outperform with a price target of $51, down from $56. While the company’s free cash flow yield remains wide versus peers, the gap has narrowed and absolute yield and capital returns look less attractive when considering the company’s portfolio depth, the analyst tells investors in a research note. The analyst now sees "less compelling upside" when considering Ovintiv’s asset depth and execution. The firm sees better buyback and dividend potential and risk/reward in other producers.