Company News

BUZZ-GS upgrades Cenovus Energy on stronger global heavy crude outlook

** Goldman Sachs (GS) upgrades U.S.-listed shares of Canadian oil and gas producer Cenovus Energy to “neutral” from “sell”; raises PT to $11 from $7.50

** Says since being added to the sell list in Sept 2018, CVE shares have outperformed, largely on improvements to co’s leverage outlook, free cash flow generation and a more constructive commodity price environment, particularly for Canadian heavy crude

** “We believe that there is potential for CVE to sign further rail contracts or expand capacity at its Bruderheim rail terminal, which could further minimize exposure to widening WTI-WCS differentials” - GS

** Says execution of over C$4 bln of asset divestitures in conjunction with the rolling off of unfavorable hedges have accelerated balance sheet repair

** 7 of 13 brokerages tracking CVE’S Canadian stock rate it “buy”, and 6 “hold”; their median PT is C$13.50

** U.S.-listed shares of CVE have risen ~40 pct so far this year (Reporting by Shradha Singh in Bengaluru)