Cenovus Energy: J.P.Morgan upgrades to 'overweight', raises PT

Global Brokerage

08/06/2021 10:36

** J.P.Morgan upgrades Cenovus Energy  CVE.TO  to
"overweight" rating from "neutral," saying Husky Energy deal
execution is progressing well in early days
    ** JPM says higher oil price environment should allow CVE to
reach its C$10 bln ($8.28 bln) interim leverage target during Q4
    ** "2021 is going to play out similarly to 2019 for CVE,
when the company used the strong oil price environment to show
material de-leveraging progress" - JPM
    ** Brokerage also says CVE could participate in buying back
stock as early as Q4
    ** Brokerage raises PT to C$14.50 from C$12
    ** 15 of 18 brokerages rate the stock "buy" or higher and
three "hold"; their median PT is $13 - Refinitiv IBES
    ** CVE is up ~48% YTD


($1 = 1.2083 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com))