Analyst Lloyd Byrne from Jefferies maintained a Buy rating on Cenovus Energy (CVE – Research Report) and keeping the price target at C$23.00.
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Lloyd Byrne has given his Buy rating due to a combination of factors that highlight Cenovus Energy’s strong performance and potential for future growth. The company’s recent financial results exceeded expectations, with cash flow per share surpassing both Jefferies’ estimates and consensus forecasts, primarily driven by robust upstream operations.
Additionally, Cenovus Energy’s capital expenditures were lower than anticipated, resulting in free cash flow significantly outperforming projections. While the US downstream segment performed in line with expectations, there is cautious optimism regarding its future trajectory, particularly with upcoming projects and potential margin improvements. These elements collectively contribute to a positive outlook for Cenovus Energy, justifying the Buy recommendation.
Byrne covers the Energy sector, focusing on stocks such as Baker Hughes Company, Suncor Energy, and Civitas Resources. According to TipRanks, Byrne has an average return of 16.4% and a 47.89% success rate on recommended stocks.