Ovintiv's Streamlined Portfolio, Resource Depth to Drive Multiple Expansion Over Time, RBC Says
Ovintiv's (OVV) streamlined portfolio, resource depth, and enhanced shareholder returns signal ongoing share price appreciation and multiple expansion over time, RBC Capital Markets said in a Tuesday research report.The company's robust well performance in the Montney basin offsetting higher royalties amid ongoing efficiency gains in 2026 is a positive, analysts wrote.The company delivered robust Q1 results and optimized its portfolio around the Montney and Permian basins, according to the note.The first pad drilled by the company post-close of the NuVista acquisition achieved $1 million capital synergies driven by enhancements, including design optimization and faster drilling times, according to the firm. RBC said it expects 2026 free cash flow of $2.8 billion.The brokerage said it reiterated its outperform rating on the stock and price target of $70 per share.Price: $57.38, Change: $-0.72, Percent Change: -1.23%