Nomura Securities Upgrades Cenovus Energy Inc. (CVE) to Neutral

Nomura Securities upgraded Cenovus Energy Inc. (NYSE: CVE) from Reduce to Neutral with a price target of C$16.00 (from C$17.00).

Analyst Lloyd Byrne commented, "While oil sands’ variable cash margins become a concern at today’s low commodity prices, we believe Cenovus’ cash on hand and "capital flexibility no longer make it a likely underperformer. Upstream production growth is bolstered in ‘16/’17 by pre-funded brownfield developments, adding ~40 kbpd of capacity net through Phase G at Foster Creek and Phase F at Christina Lake. Finally, Cenovus’ production base doesn’t lend itself to conventional-like declines, and its downstream exposure presents a hedge."

For an analyst ratings summary and ratings history on Cenovus Energy Inc. click here. For more ratings news on Cenovus Energy Inc. click here.

Shares of Cenovus Energy Inc. closed at $11.41 yesterday.

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