September 7, 2018 / 3:07 PM / in 2 months

BUZZ-Cenovus Energy: Falls as Goldman Sachs downgrades to sell; cuts PT

** Canadian oil and gas producer’s shares down ~2 pct at C$11.35; Goldman Sachs downgrades it to sell and cuts PT to $8 from $12

** Company’s U.S.-listed shares also down ~3 pct at $8.60

** Brokerage sees CVE as “challenged” due to high exposure to Canadian crude’s weak prices which is expected to remain low until pipeline expansion projects come online in 2020

** Says Alberta’s imposition of post-payout royalty for company’s Christina lake assets could drive costs up

** GS updates its 2019 WTI-WCS crude spread differential forecast from $22/bbl to $25/bbl over continued pipeline bottlenecks in Canada

** Out of 24 brokerages, 13 rate the stock “buy” or higher, 11 “hold”; Median PT C$16.75

** Including today’s losses, has fallen 1.1 pct and has fallen 5.3 pct YTD (Reporting by Shanti S Nair in Bengaluru)

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