BMO Capital analyst Jeremy Mccrea downgraded the rating on NuVista Energy to a Hold today, setting a price target of C$18.00.
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Jeremy Mccrea has given his Hold rating due to a combination of factors surrounding NuVista Energy’s recent performance and strategic developments. Despite the company’s strong production capabilities and successful operational achievements, such as ramping up production above 100,000 boe/d, the recent acquisition announcement by Ovintiv has influenced the market dynamics. The acquisition appears to be progressing smoothly, with expectations to close in Q1 2026, and NuVista’s stock is trading close to the offer price by Ovintiv.
Additionally, while NuVista has demonstrated impressive cash flow and operational efficiency, the lack of surprises in the quarterly results and the alignment with market expectations contribute to the Hold rating. The company’s strategic position as one of the few E&P firms with growth potential, supported by its robust infrastructure and strong Montney results, is acknowledged. However, the proximity of the stock price to the acquisition offer limits the immediate upside potential, justifying a more cautious Market Perform stance.
Mccrea covers the Energy sector, focusing on stocks such as Obsidian Energy, Samoth Oilfield, and Paramount Resources. According to TipRanks, Mccrea has an average return of 21.1% and a 59.40% success rate on recommended stocks.
In another report released on November 7, CIBC also downgraded the stock to a Hold with a C$18.00 price target.