2023-06-06 11:51:10 ET
Cenovus Energy ( NYSE: CVE ) +1.1% in Tuesday's trading as Goldman Sachs upgraded the stock to Buy from Neutral with a $22 price target, bumped up from $20, citing attractive valuation following underperformance and an inflection of operations, particularly in refining.
Goldman's Neil Metha said he sees an imminent catalyst for Cenovus ( CVE ) shares around the restart of the Superior refinery in Wisconsin and the Toledo refinery in Ohio following fires, which should drive an inflection in the downstream segment cash flow in this year's H2.
Mehta also believes achieving the company's anticipated C$4B leverage target will pave the way for increased shareholder returns, expecting to transition to 100% excess free cash flow payout to shareholders.
More on Cenovus Energy :
Financial and valuation comparison to sector peers
- Analysis: Cenovus Energy: Investor Patience Could Be Rewarded Toward Year End
- Stock price return: Down 5.5% YTD, down 27.5% in the past 12 months
For further details see:
Cenovus Energy raised to Buy at Goldman on inflection of refining operations