Ovintiv downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Arun Jayaram downgraded Ovintiv to Neutral from Overweight with a price target of $53, down from $59. The analyst also removed the shares from the firm’s Analyst Focus List. Ovintiv’s free cash flow and return on capital yields are no longer differentiated at strip pricing following the recent cash tax surprise, the analyst tells investors in a research note. The firm still believes a cautious view on shale-focused exploration nd production companies is warranted.