Wells Fargo analyst Roger Read maintained a Hold rating on Ovintiv (OVV – Research Report) yesterday and set a price target of $46.00.
Roger Read’s rating is based on a combination of factors that reflect Ovintiv’s current operational and financial outlook. The company is expected to deliver solid operational results in the first quarter of 2025, with production figures aligning with forecasts and a modest upside in financial performance. However, there are concerns regarding potential tariff impacts and the trajectory of production, which are key focus areas for investors.
Additionally, Ovintiv’s strategic decision to pause share buybacks and acquisitions to focus on reducing debt following the Montney acquisition indicates a cautious approach to financial management. While the company aims to resume buybacks in the second quarter of 2025, the anticipated non-cash impairment related to Canadian assets and the need to manage cash returns prudently contribute to the Hold rating. These factors suggest a balanced outlook, warranting a Hold recommendation as the company navigates through these financial and operational challenges.
According to TipRanks, Read is an analyst with an average return of -0.6% and a 44.40% success rate. Read covers the Energy sector, focusing on stocks such as BP, Conocophillips, and HF Sinclair Corporation.
In another report released on April 16, Goldman Sachs also maintained a Hold rating on the stock with a $47.00 price target.