HUSKF - Cenovus Husky upgraded at Stifel on 'win-win' merger deal

Cenovus Energy (CVE) +4.4% pre-market after the company and acquisition target Husky Energy (HUSKF) are upgraded to Buy from Hold at Stifel, where analyst Michael Dunn calls the deal a "win-win."Dunn believes the combined entity will be better positioned for the long-term, while improving Cenovus' balance sheet metrics.Cenovus shares fell 8.5% yesterday after investors flinched at the "excessive" 23% premium paid for Husky.Cenovus recently was downgraded to Underweight at J.P. Morgan, which pointed to low WCS prices, a weak refining environment and the likelihood that it will be tough for the company to reduce debt given near-term strip pricing.

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Cenovus, Husky upgraded at Stifel on 'win-win' merger deal