Ovintiv downgraded to Neutral from Buy at Citi

Citi analyst Scott Gruber downgraded Ovintiv to Neutral from Buy with a price target of $38, down from $55. The analyst recommends investors "focus on catalysts and quality" within exploration and production. Capital efficiency should improve for domestic E&Ps on lower service rates, but Ovintiv "remains modestly levered" and has greater domestic gas exposure and a higher cost structure, the analyst tells investors in a research note. Citi’s base case is for weak gas prices to linger as producers fail to make sufficient cuts to activity.