Ovintiv price target lowered to $42 from $60 at Evercore ISI

Evercore ISI analyst Stephen Richardson lowered the firm’s price target on Ovintiv to $42 from $60 after the company announced it has entered into an agreement to acquire substantially all leasehold interest and related assets of Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources in a cash and stock transaction valued at approximately $4.28B. The firm, which says it "wouldn’t quibble" with the asset here or price paid as it bulks up Ovintiv in "a basin where execution has been good and resource understanding is high," but adds that the bar is high for acquisitions to prove out accretion. Evercore, which calls the deal "long anticipated" and "better than feared," keeps an In Line rating on Ovintiv shares.