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LivestreamMenuOvintiv shares have been under pressure of late, but they could soon bounce following the energy company’s strategic overhaul of its portfolio, according to Wells Fargo. The bank upgraded the oil and gas name to overweight from equal weight. It also raised its price target on shares to $80 from $57, implying 53% upside from Thursday’s close. “With portfolio transformation now complete, OVV is shifting to delivery, supported by deep inventory & strong execution,” analyst Hanwen Chang said Monday in a note. “We see a more durable [free-cash flow] profile not fully reflected in valuation, w/ shares trading at a discount to peers.” Ovintiv has declined 8% over the past three months and 11.7% in the second quarter. OVV 3M mountain Shares have fallen 8% over the past three months. The energy firm earlier this year agreed to sell assets belonging to its Oklahoma-based entity Anadarko in a bid to ease debt pressures. It also closed its nearly $3 billion acquisition of Canadian NuVista Energy in early February. The acquisition is expected to add to its business roughly 930 net 10,000-foot equivalent well locations and approximately 140,000 net acres in oil-rich Alberta Montney, the company said in a statement dated Feb. 3. “With integration and portfolio risk largely behind, the focus pivots from transformation to execution, giving us greater confidence in delivery, returns, and cash flow durability,” Chang wrote. Wells Fargo’s call falls in line with consensus on Wall Street. Of the 24 analysts covering Ovintiv, 18 have a buy or strong buy on the stock, LSEG data shows.Read More
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