RBC Capital Markets on Wednesday increased Cenovus Energy's (CVE.TO) price target to C$45 from $42 with an outperform rating, based on improved consistency and expanded multiples.
Cenovus Energy's first-quarter results included upstream production of 972,100 barrels of oil equivalent per day, beating expectations, as well as better upstream-downstream margins.
The company has also sold its Canadian Commercial Fuels business for $275 million.
"Our constructive stance towards Cenovus reflects its capable leadership team, shareholder alignment, free cash flow generation and enhanced portfolio via the MEG Energy acquisition/WRB disposition," RBC said.
Cenovus traded at $37.93 per share at last look Thursday on the Toronto Stock Exchange.
Price: $37.89, Change: $-1.60, Percent Change: -4.05%