Research Alert: CFRA Downgrades View On Cenovus Energy Inc. To Sell From Hold
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We downgrade our rating to Sell from Hold on CVE, as peers see a widening differential on WTI rising faster than WCS and global economic demand degradation becoming more of a possibility as time passes. CVE has reaped the benefits thus far, however price volatility to the downside remains a threat. We lowered our 12-month target price to CAD35. This reflects a 5.5x EBITDA multiple of our FY 27 EBITDA estimate. CVE's long term average is 5.7x. We raise our FY 26 EPS estimate to CAD3.89 (+0.42) and FY 27 to CAD2.80 (+0.05). CVE will use this 'sugar rush' in oil pricing to de-level aggressively, however peers operate more efficiently (SU) and can return all excess FCF to shareholders is they wish (SU, IMO), versus CVE who is currently only able to return 50% of excess free cash flows.