Ovintiv price target raised to $65 from $62 at Mizuho

Mizuho raised the firm’s price target on Ovintiv to $65 from $62 and keeps a Buy rating on the shares. Although higher commodity prices and an improving macro outlook have driven outperformance of U.S. oil and gas stocks, there are some secular tailwinds for the energy sector that give more confidence in longer-term cash generation, the analyst tells investors in a research note. The firm stays constructive on the space, particularly U.S. exploration and production stocks. However, while refining margins are likely strong, the risk/reward for the group is skewed to the downside, the analyst tells investors in a research note. As a result, the firm is upgrading Chevron (CVX), Matador Resources (MTDR) and Permian Resources (PR) to Buy, while downgrading Marathon Petroleum (MPC), HF Sinclair (DINO) and Magnolia Oil & Gas (MGY) to Neutral. Mizuho also added Pioneer Natural Resources (PXD) to its Top Picks, alongside Coterra Energy (CTRA) and Diamondback Energy (FANG), replacing Devon Energy (DVN).