Morgan Stanley Raises Cenovus Energy Price Target to C$31.00
Cenovus Energy (TSE:CVE) has seen its price target increased by Morgan Stanley from C$26.00 to C$31.00, according to a report released on Thursday. This adjustment reflects analysts’ positive outlook on the company, which is involved in the integrated oil sector, focusing on oil sands development and conventional oil production.
Several other financial institutions have also recently revised their price targets for Cenovus Energy. On August 25, 2023, Desjardins raised its target from C$27.50 to C$29.00. Following closely, Scotiabank adjusted its price target from C$27.00 to C$29.00 and categorized the stock as “outperform” on October 14, 2023. Meanwhile, JPMorgan Chase & Co. lowered its target from C$32.00 to C$29.00, while maintaining an “overweight” rating.
In addition, National Bank Financial upgraded Cenovus Energy from a “hold” to a “strong-buy” rating on August 22, 2023. The Royal Bank of Canada also adjusted its expectations, lifting the target price from C$30.00 to C$32.00 on October 16, 2023. Currently, two analysts rate the stock as a Strong Buy, while eight have issued a Buy rating, and one has given it a Hold rating. As reported by MarketBeat.com, the consensus rating for Cenovus Energy stands at “Buy” with an average target price of C$28.83.
Cenovus Energy has also reported its quarterly earnings data, revealing earnings per share (EPS) of C$0.72 for the period ending October 31, 2023. The company generated revenue of C$13.20 billion during this quarter, contributing to a return on equity of 12.67% and a net margin of 6.72%. Analysts forecast that Cenovus Energy will achieve an EPS of approximately C$2.26 for the current fiscal year.
In addition to its financial performance, Cenovus Energy declared a quarterly dividend of $0.20 per share, which was distributed to shareholders on September 29, 2023. This dividend reflects an annualized payout of $0.80 and a dividend yield of 3.1%. The ex-dividend date was set for September 15, 2023, and the company’s current dividend payout ratio stands at 43.93%.
Cenovus Energy operates primarily in Alberta, Canada, and focuses on developing its oil sands assets alongside producing conventional crude oil, natural gas liquids, and natural gas. The company has an average net upstream production of 472 thousand barrels of oil equivalent per day and holds approximately 6.7 billion barrels of oil equivalent in proven and probable reserves.
As Cenovus Energy continues to receive favorable ratings and price target adjustments from analysts, its financial strategies and performance will likely remain in the spotlight for investors and market watchers alike.
